Egypt Bets Big on Renewables as Foreign Investment Accelerates

Egypt expects to significantly expand its energy sector in the coming years, with recent oil discoveries in the Western Desert and big plans to develop its renewable energy capacity. Egypt started the year off by signing $1.8 billion worth of renewable energy agreements. The deals include contracts with Norwegian renewable energy developer Scatec and China’s Sungrow. This is part of the North African country’s aim to achieve a 42 percent contribution of renewable energy to electricity generation by the end of the decade.

The first project to be developed will be the Scatec solar energy plant, which will produce clean electricity, alongside the establishment of energy storage stations in Upper Egypt’s Minya Governorate, according to an Egyptian cabinet statement. The solar plant is expected to have a total capacity of 1.7 GW, with 4 GW-hours of battery storage.

In addition, the government has entered into a power purchase agreement (PPA) with Scatec, which will provide Egypt with 1.95 GW of clean power and 3.9 GW-hours of battery storage. “The agreements reflect growing demand for firm clean power and advanced storage solutions,” Scatec said in a statement.