Egypt has taken another major step in its energy transition after finalizing a $1.8 billion agreement with Norway’s Scatec and China’s Sungrow, strengthening its push toward renewable energy and large-scale battery storage.
The deal follows a recent energy cooperation agreement between Egypt and Qatar aimed at expanding liquefied natural gas supply and broader infrastructure collaboration.
Building on that momentum, Cairo has now secured partnerships that will deliver two flagship renewable energy projects designed to boost clean power generation and storage capacity.
Under the agreement, Scatec will oversee the development of the “Energy Valley” solar project in Minya Governorate. The 1.7-gigawatt solar facility will be supported by 4 gigawatt-hours of battery energy storage systems strategically deployed across Minya, Qena, and Alexandria to enhance grid stability and power reliability.
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In a parallel initiative, China’s Sungrow will construct a battery storage manufacturing facility in the El-Sokhna industrial zone within the Suez Canal Economic Zone.
Spanning 50,000 square meters, the plant will be the first of its kind in the Middle East and Africa dedicated to producing battery energy storage systems. Production is scheduled to begin in April 2027, with the facility expected to reach an annual capacity of 10 GWh at full operation.
Both projects will be jointly overseen by the General Authority for the Suez Canal Economic Zone and Egypt’s Ministry of Electricity and Renewable Energy. They align with Egypt’s long-term energy strategy to raise renewable energy’s share of the national power mix to more than 42% by 2030 and between 60% and 65% by 2040.
Egypt’s clean energy drive complements its continued investment in natural gas as a transitional fuel. Last year, the country concluded a landmark $35 billion gas agreement with Israel, one of the largest energy deals in the Eastern Mediterranean.
The deal will see Egypt receive up to 130 billion cubic metres of gas from Israel’s Leviathan field through 2040, reinforcing Egypt’s role as a regional energy hub while it scales up renewable capacity.
Together, the renewable projects and gas partnerships underscore Egypt’s dual-track approach to energy security—balancing immediate supply needs with long-term sustainability goals.
