Egypt has taken a major step in scaling up its clean energy infrastructure after the Ministry of Electricity and Renewable Energy and the Suez Canal Economic Zone signed two renewable energy and energy storage agreements with combined investments exceeding $1.8 billion, according to a cabinet statement. The deals aim to enhance the reliability of the national electricity grid while accelerating Egypt’s transition toward renewable power and localized energy manufacturing.
The first agreement covers a land usufruct contract for the “Energy Valley” solar and battery storage project in Minya Governorate, developed by Scatec, which will deliver around 1.7 gigawatts of solar photovoltaic capacity supported by large-scale battery storage distributed across Minya, Qena, and Alexandria. The project, which includes new substations and transmission lines, is designed to provide clean and stable electricity around the clock and support industrial expansion in Upper Egypt, while a power purchase agreement with the Egyptian Electricity Transmission Company secures the offtake of nearly 2 gigawatts of solar power and close to 4 gigawatt-hours of battery storage.
The second agreement involves the establishment of a battery energy storage manufacturing facility in the Ain Sokhna TEDA zone within SCZone by Chinese firm Sungrow, with an annual production capacity of up to 10 gigawatt-hours when fully operational. Scheduled to start production in 2027, the plant is expected to supply part of the Energy Valley project’s needs, support localization of advanced energy technologies, and create around 150 direct jobs.
The agreements come as part of a broader push highlighted during factory inaugurations attended by Prime Minister Mostafa Madbouly, who reiterated the government’s targets to raise the share of renewable energy to 42 percent by 2030, expand private sector participation, and position SCZone as a regional hub for green manufacturing, logistics, and export-oriented industries.
