Norwegian renewable energy company Scatec plans to invest approximately EGP 5 billion in a new high-voltage transformer station and electricity transmission line in Egypt as part of broader efforts to support the country’s expanding renewable energy sector and strengthen grid stability, according to a government official familiar with the project cited by Asharq Business.
The project includes the construction of a 500-kilovolt transformer station in Samalut, Minya Governorate, alongside a 70-kilometer transmission line operating at the same voltage level. The infrastructure is intended to transport electricity generated from the company’s solar projects in southern Egypt, which are expected to produce up to 1,700 megawatts of renewable power.
According to the official, Scatec will fully finance the project, with implementation expected to begin following the completion of final award procedures and commercial arrangements. The project is scheduled to enter operation by the end of 2027.
The planned infrastructure will additionally support battery energy storage systems with a total capacity of 4,000 megawatt-hours, helping improve the stability and operational flexibility of Egypt’s national electricity grid amid growing renewable energy integration.
The investment comes as Egypt accelerates efforts to diversify its energy mix and reduce dependence on natural gas for electricity generation. Egyptian authorities are targeting renewable energy to account for 45% of the country’s electricity generation mix by 2028 as part of the national energy transition strategy, while also seeking to position Egypt as a regional renewable energy and electricity export hub.
According to official energy sector data, Egypt’s total renewable energy generation capacity reached approximately 9.3 gigawatts by the end of 2025, supported by expanding solar and wind projects across Upper Egypt and the Red Sea region.
Expanding renewable energy generation and storage capacity is also expected to help reduce pressure on natural gas consumption at power stations and potentially ease long-term fuel import burdens amid rising regional energy costs.
Earlier this year, Scatec signed preliminary financing agreements for Egypt’s “Green Energy Valley” project, a clean energy initiative valued at approximately $1.8 billion and backed by international financial institutions including the European Investment Bank, the European Bank for Reconstruction and Development, and the African Development Bank.
The broader project includes the development of a 1.7-gigawatt solar power plant in Minya Governorate supported by large-scale battery storage systems distributed across Minya, Qena, and Alexandria.
Analysts note that expanding transmission infrastructure and battery storage capacity is becoming increasingly critical for Egypt’s renewable energy ambitions, particularly as the country seeks to manage rising electricity demand, integrate intermittent renewable generation more efficiently, and improve long-term grid resilience.
As The Middle East Observer notes, the latest investment reflects growing international confidence in Egypt’s renewable energy sector while highlighting the increasing strategic importance of transmission networks, grid modernization, and battery storage systems in supporting large-scale clean energy deployment across the region.
