Norway-based renewable energy developer Scatec announced that it has signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for Egypt’s first hybrid solar power and battery storage project.
The agreement covers a 1 gigawatt (GW) solar power plant and a 100 megawatt (MW) battery energy storage system (BESS). However, the financial details of the contract were not disclosed.
“This will be the first hybrid solar and battery project in Egypt and demonstrates Scatec’s strong position as one of the largest renewable energy producers in the country,” said CEO Terje Pilskog.
Scatec is now working on finalizing land lease and grid connection agreements. It expects to reach a financial close with lenders and begin constructing the hybrid solar and BESS project in the first half of 2025.
In 2017, Scatec signed another 25-year PPA with EETC for six solar plants near Aswan, with a combined capacity of 380 MW. These plants have been connected to the grid since 2019.
As Egypt faces declining domestic gas production and growing electricity demand, the country aims to increase the share of renewable energy in its power generation mix to 42% by 2030, up from 11.5% in 2023.
The Egyptian Natural Gas Holding Company (EGAS) has completed a study proposing a 10% to 30% increase in natural gas prices supplied to factories, with the exact adjustment varying by industry and consumption levels, two government sources told Asharq Business.
The study, which will be submitted to the cabinet, excludes factories that have contracts with EGAS based on a variable pricing model, according to reports.
Another report noted that the cost of supplying 1 million thermal units of natural gas to Egyptian factories was calculated at approximately $6 based on production and import rates from the previous fiscal year (FY).
However, the study indicated that this cost will rise in the current FY due to the country’s increased gas import rates.
