Norwegian independent power producer Scatec has signed a power purchase agreement (PPA) for 1.95GW of PV and 3.9GWh of battery energy storage system (BESS) capacity in Egypt.
Under the deal with the Egyptian Electricity Transmission Company (EETC), Scatec will build one integrated solar and battery storage hybrid system, offering around-the-clock baseload power.
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Additionally, the company said it would develop two further standalone BESS projects offering grid stability and support services.
The 25-year, pay-as-produced PPA will compensate Scatec based on the electricity generated by the hybrid system, which is expected to deliver around 6,000GWh of electricity annually, according to the company.
Scatec declined to give further details on the other two BESS projects, but said the combined capacity of the projects would be the largest solar and BESS installation in Africa and Scatec’s largest investment to date.
“By integrating advanced solar and battery technologies, we are providing Egypt with sustainable, around-the-clock power and grid stabilising services, supporting both the country’s energy transition and the region’s long-term economic development,” said Scatec CEO Terje Pilskog.
In addition to acting as the lead developer of the projects, Scatec will provide EPC, asset management, and operations and maintenance services for the projects.
The company plans to invite additional equity partners and anticipates reaching financial close by the second half of 2026.
Scatec already has a substantial presence in Egypt, with a number of PV projects already operational in the 1.8GW Benban solar park and several solar-plus-storage hybrid projects in the pipeline.
These include the 1.1.GW/200MWh Obelisk solar-plus-storage project, on which the company reached financial close last summer. The first phase of the project broke ground last May and will involve around half of the total solar capacity plus the BESS element. The second phase is expected to get underway in the second half of 2026.
The company is also working on a 1.1GW solar/200MWh BESS project to supply power for Egypt Aluminium. Construction on phase one of the Dandara project is expected later this year.
