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Arab Finance: Egypt signed agreements and contracts worth over $1.8 billion to develop two integrated renewable energy projects and localize the manufacturing of their components, the Egyptian cabinet stated on January 11th.
The signing comes as part of the country’s strategy to expand clean energy and strengthen local value chains.
The first project will be developed by the Norwegian company Scatec to establish a large-scale solar and energy storage project under the name of Valley for Sustainable Energy - Energy Valley in Minya Governorate.
The second project, developed by the Chinese company Sungrow, covers the establishment of a battery energy storage manufacturing plant at the Suez Canal Economic Zone (SCZONE). Part of this factory’s output is earmarked for the solar project in Minya.
Both projects are being implemented in cooperation with the Ministry of Electricity and Renewable Energy and the SCZONE.
Prime Minister Mostafa Madbouly said the projects align with the state’s plan to localize industries linked to renewable energy, describing localization as a cornerstone for enhancing energy security and supporting the green transition.
He added that attracting investments of this scale reflects international companies’ confidence in Egypt’s investment climate.
As part of the package, a power purchase agreement was signed between the Egyptian Electricity Transmission Company (EETC) and Scatec, along with a land usufruct agreement signed with the New and Renewable Energy Authority (NREA), for the Energy Valley solar project in Minya.
Separately, a land usufruct agreement was concluded to establish a battery energy storage manufacturing plant for Sungrow within the TEDA industrial development area in the SCZONE.
In addition, Scatec and Sungrow signed a contract for the supply of energy storage batteries to the Energy Valley project in Minya.
The Energy Valley project is described as one of the world’s largest integrated clean energy projects and the first in the region designed to provide stable, clean electricity around the clock at a competitive tariff.
It has a capacity of 1.7 gigawatts of alternating current solar photovoltaic power, supported by battery energy storage systems totaling 4 gigawatt-hours distributed across Minya, Qena, and Alexandria.
The project also involves the construction of new substations and dedicated transmission lines and will supply clean energy to the industrial zone in Wadi El-Sereiriya in Minya.
The Sungrow factory, the first of its kind in the Middle East and Africa for battery energy storage systems, is being built in the TEDA-Egypt industrial zone in Ain Sokhna.
Spanning 50,000 square meters, the facility is expected to create around 150 direct jobs.
Once fully operational, it will have an annual production capacity of 10 gigawatt-hours, with production scheduled to begin in April 2027.
