Norwegian renewable energy developer Scatec has signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for the country’s first hybrid solar power and battery storage project.
The deal covers a one-gigawatt solar power plant paired with a 100-megawatt battery storage system.
While Scatec did not disclose the contract’s financial terms, CEO Terje Pilskog noted the significance of the project, calling it “a testament to the company’s growing role as a leading renewable energy producer in Egypt.”
Scatec is now working to finalize the land lease and grid connection agreements, with plans to secure financing and begin construction in the first half of 2025.
This latest venture follows a 2017 PPA between Scatec and EETC for six solar plants in Upper Egypt near Aswan, which have generated 380 MW of power since they became operational in 2019.
A PPA is a long-term contractual arrangement between a renewable energy supplier and a buyer, in this case the government. PPAs ensure that the supplier provides electricity at a fixed rate for a set period of time.
As Egypt grapples with dwindling natural gas supplies and increasing electricity demand, the government is aiming for renewables to make up 42 percent of its energy mix by 2035, up from 11.5 percent in 2023.
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