Scatec secures power sale deal for Egypt's hybrid solar and battery project

Scatec, a Norwegian renewable energy developer, announced on Thursday that it had signed a power purchase agreement with Egyptian Electricity Transmission Company for 25 years. The project is Egypt's first hybrid power system combining solar and battery storage.

Scatec announced that it had signed a 25-year PPA in U.S. dollars with EETC to build a solar power plant of 1 gigawatt and a battery storage system (BESS) of 100 megawatts.

The company has not disclosed the value of the contract.

In a press release, CEO Terje Pilskog stated that this project would be the first hybrid battery and solar energy project in Egypt. It also demonstrated Scatec’s position as the largest renewable power producer in the country.

Scatec expects to complete land lease agreements and grid connection agreements and reach financial close with its lenders in the first half 2025.

The Norwegian company has already signed a PPA for 25 years with EETC, covering six solar plants in Upper Egypt near Aswan. These six plants have 380 MW capacity and are connected to the grid.

Egypt, facing declining domestic gas production, and increasing electricity consumption, aims to increase its renewable energy share in the country's power generation mix from 11.5% by 2023 to 42% by 2030. (Reporting from Nora Buli, London; additional reporting by Marwa Rashed)

(source: Reuters)