UAE-based renewable energy developer AMEA Power is set to build one of Africa’s largest solar PV projects in Egypt, with a generation capacity of 1GW, after signing several power purchase agreements (PPAs).
The solar PV project, situated in the Benban area, Aswan Governorate—a region already well known for its solar PV prowess via the 1.8GW Benban project—will be accompanied by a 600MWh battery energy storage system (BESS).
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AMEA will also expand its 500MW Abydos solar PV power plant, currently under construction, by adding a 300MWh utility-scale BESS. The developer will invest around US$800 million in the two new renewable energy projects in Egypt.
AMEA Power signed PPAs with the Egyptian Electricity Transmission Company for both projects, with these expected to create approximately 2,500 jobs during peak construction.
This is the second major announcement in the Egyptian solar PV and BESS market this week. PV Tech reported yesterday (12 September) that Norwegian renewable power developer Scatec had also signed a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company for a 1GW solar-plus-storage project currently under development in the country.
The project will be co-located with a 100MW/200MWh BESS, and the Egyptian Electricity Transmission Company will acquire power from the upcoming Scatec project for 25 years. With both projects announced simultaneously, both AMEA Power and Scatec have made claims to developing the first utility-scale BESS project in the country.
“As the developer of the largest solar PV project in Africa and the first developer to undertake BESS in Egypt, our projects not only set a new benchmark in the renewable energy sector in Egypt and on the Continent but also demonstrates our leadership and innovative spirit in pushing the boundaries of what is possible,” said Hussain Al Nowais, chairman of AMEA Power.
“By investing in Egypt’s energy future, we are reinforcing our dedication to driving positive change and supporting socio-economic development across the regions we serve.”
Utility-scale BESS to help provide grid stability and scale renewable energy generation
The development of utility-scale BESS in Egypt represents a major stride in the market’s growth and will help provide grid stability to counter the recent power outages the country has witnessed, whilst also facilitating the growth in solar PV and wind generation.
According to the International Energy Agency (IEA), as of 2023, solar PV is a relatively small contributor to Egypt’s power generation, accounting for only 28% of the country’s installed renewable energy capacity, which in turn makes up just 11% of its overall energy mix.
Egypt currently operates more than 50GW of fossil fuel generation capacity, but it has announced plans to install an additional 4GW of new renewable energy capacity by next summer.
