Egypt gets $2bn push to localise renewables sector

Egypt has signed deals worth $1.8 billion with Chinese and Norwegian companies as it aims to localise its renewable energy sector.

Norwegian renewable energy developer Scatec will build a large-scale solar power plant and energy storage facilities in the Minya governorate, the Egyptian cabinet said in a statement.

The solar plant will have a generation capacity of 1.7 gigawatts (GW) and will be supported by battery energy storage systems (BESS) with a total capacity of 4 gigawatt hours (GWh).

Scatec signed a 25-year power purchase agreement for a total capacity of 1.95 GW and 3.9 GWh of BESS, it said in a statement.

In addition, the Norwegian company will develop two standalone BESS projects to provide essential grid stability and support services.  

The project is expected to deliver 6,000 GWh of renewable energy annually.

Details on capital expenditure and the financing structure will be provided at financial close, expected in the second half of 2026, Scatec said.

Meanwhile, the cabinet said China’s Sungrow will develop a factory to manufacture energy storage batteries at the Suez Canal Economic Zone. 

A portion of the factory’s output will be supplied to the Scatec project, the statement added.

Covering 50,000 sq m, the Sungrow facility will have an annual output of 10 GWh, with operations starting in April 2027.

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In the cabinet statement, Prime Minister Mostafa Madbouly said the projects align with the government’s decision to localise industries related to the renewable energy sector, which will support green transition and strengthen local value chains. 

In December, the European Bank for Reconstruction and Development said it would provide €200 million ($235 million) to support Egypt’s plans to transition to a green economy.

The Nexus of Water, Food and Energy programme was launched in 2022 and aims to advance Egypt’s national climate agenda by mobilising climate finance and private investment in support of the green transition.

Cairo expects renewable energy to account for 42 percent of its electricity generation mix by 2030.