Egypt's $1.8 Billion Leap into Renewable Energy

On January 11, 2026, Egypt signed agreements worth over $1.8 billion with Norway's Scatec and China's Sungrow to develop two significant renewable energy projects. These initiatives are part of Egypt's strategy to enhance its renewable energy infrastructure and increase the share of renewable sources in its electricity generation mix to 42% by 2030 and 60-65% by 2040.

Egypt Seals $1.8bn Renewable Energy Deals with China, Norway

The first project, named "Energy Valley," will be developed by Scatec in Minya Governorate. It includes a solar power plant with a generation capacity of 1.7 gigawatts (GW) and a battery energy storage system (BESS) with a total capacity of 4 gigawatt-hours (GWh). The second project involves Sungrow establishing a manufacturing facility within the Suez Canal Economic Zone (SCZONE) to produce energy storage batteries, with an expected annual production capacity of 10 GWh once fully operational in April 2027.

Egypt secures $1.8B renewable energy projects with scatec, sungrow in SCZoneEgypt Seals $1.8bn Renewable Energy Deals with China, NorwayReutersMadbouly says Egypt entering solar manufacturing era as $1.8bn energy agreements signedScatec to Build Africa’s Largest Solar and BESS Portfolio in EgyptScatec signs landmark PPA in Egypt for 1.95 GW Solar and 3.9 GWh BESS capacity

The Energy Valley project aims to provide stable, clean electricity around the clock and is expected to generate approximately 6,000 GWh of renewable energy annually. This project will also include the construction of new transformer stations and dedicated transmission lines to supply power to the Wadi Al-Saririya industrial area in Minya. Scatec will oversee the development and management of the project, which is touted as the largest solar and BESS installation in Africa.

Egypt secures $1.8B renewable energy projects with scatec, sungrow in SCZoneMadbouly says Egypt entering solar manufacturing era as $1.8bn energy agreements signedEgypt Seals $1.8bn Renewable Energy Deals with China, NorwayScatec to Build Africa’s Largest Solar and BESS Portfolio in EgyptScatec signs landmark PPA in Egypt for 1.95 GW Solar and 3.9 GWh BESS capacityReuters

Sungrow's factory, the first of its kind in the Middle East and Africa, will cover 50,000 square meters and is anticipated to create around 150 direct jobs. The facility will support local manufacturing of renewable energy components, aligning with Egypt's Vision 2030 objectives.

Egypt Seals $1.8bn Renewable Energy Deals with China, Norway

Prime Minister Mostafa Madbouly emphasized the importance of localizing renewable energy industries, stating that these projects mark Egypt's formal entry into domestic production of solar energy components and battery storage systems. He noted that the localization of these industries is crucial for enhancing energy security and achieving a green transition. Madbouly also highlighted that the local component ratio in the new factories has reached over 50%, allowing Egypt to meet its energy needs using domestic currency rather than relying on imports.

Madbouly says Egypt entering solar manufacturing era as $1.8bn energy agreements signed

Scatec's CEO, Terje Pilskog, expressed confidence in the projects, stating, “Signing this groundbreaking PPA further cements Scatec’s leading position and commitment to delivering reliable, renewable energy at a large scale in Africa.”

Scatec signs landmark PPA in Egypt for 1.95 GW Solar and 3.9 GWh BESS capacity

While the projects are seen as a significant step forward, some critics argue that achieving the ambitious renewable energy targets will require sustained international support and investment. Concerns have also been raised about the potential environmental impacts of large-scale solar installations and the need for comprehensive regulatory frameworks to manage these developments effectively.

Photos: Egypt inaugurates multimillion-dollar industrial complexes in Sokhna

The projects are expected to commence operations in phases, with Scatec and Sungrow planning to finalize financial details by the second half of 2026. The Egyptian government anticipates that these initiatives will not only bolster the national electricity grid but also attract further investments in the renewable energy sector, contributing to economic growth projections of 7.5% to 8% by 2030.

Egypt Seals $1.8bn Renewable Energy Deals with China, Norway

• “Signing this groundbreaking PPA further cements Scatec’s leading position and commitment to delivering reliable, renewable energy at a large scale in Africa.” — Terje Pilskog, CEO of Scatec

Scatec signs landmark PPA in Egypt for 1.95 GW Solar and 3.9 GWh BESS capacity

• “During the ceremony, Madbouly stated that the localisation of industries related to renewable energy is a fundamental pillar for enhancing energy security and achieving a green transition.” — Mostafa Madbouly, Prime Minister of Egypt

Madbouly says Egypt entering solar manufacturing era as $1.8bn energy agreements signed