Scatec secures power purchase deal for Egypt’s first hybrid solar project

Image credit: Ute Grabowsky/ Getty Images

Norway-based renewable energy developer Scatec said on Thursday that it had signed a 25-year power purchase agreement (PPA) with Egyptian Electricity Transmission Company (EETC) for the North African country’s first hybrid solar power and battery storage project.

Scatec signed a US dollar-denominated 25-year PPA with EETC for a 1 gigawatt (GW) solar power plant and 100 megawatt (MW) battery storage project.

The company did not disclose the financial value of the contract.

“This will be the first hybrid solar and battery project in Egypt and demonstrates Scatec’s strong position as one of the largest renewable energy producers in the country,” CEO Terje Pilskog said in a statement.

Scatec will now finalise the land lease and grid connection agreements. It expects to reach a financial close with lenders and start construction of the solar and battery storage project in the first half of 2025.

The Norwegian company signed a 25-year PPA with EETC in 2017 for six solar plants near Aswan, in Upper Egypt. The plants have a total capacity of 380 MW and have been connected to the grid since 2019.

Egypt, which faces declining domestic gas production and rising electricity consumption, aims to have a 42 per cent share of renewable energy in its power generation mix by 2030, up from 11.5 per cent in 2023.

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