Egypt has signed renewable energy agreements worth a combined US$1.8 billion as part of its push to expand clean power generation and reduce dependence on fossil fuels, state television reported on Sunday (Jan 11).
The deals include major contracts with Norwegian renewable energy developer Scatec and China’s Sungrow, reflecting Cairo’s growing reliance on international partners to meet its ambitious energy transition goals. Egypt aims to generate 42 per cent of its electricity from renewable sources by 2030, but government officials have warned that achieving the target will be difficult without sustained foreign investment, financing and technology transfer.
At the centre of the agreements is a large-scale solar power project to be developed by Scatec in Upper Egypt’s Minya governorate. According to an Egyptian cabinet statement, the project will involve the construction of a solar energy plant with an electricity generation capacity of 1.7 gigawatts, supported by advanced battery energy storage systems with a total capacity of 4 gigawatt hours. The inclusion of storage infrastructure is seen as critical to stabilising Egypt’s power grid and addressing the intermittency of solar generation.
In parallel, Chinese firm Sungrow will establish a factory to manufacture energy storage batteries within the Suez Canal Economic Zone, a strategic industrial hub aimed at attracting export-oriented investment. The cabinet said a portion of the factory’s output would be dedicated to supplying the Minya solar project, helping to localise parts of the renewable energy supply chain and reduce import dependence.
The agreements also include long-term power purchase arrangements designed to provide financial certainty for investors. Scatec said it has signed power purchase agreements covering a total capacity of 1.95 gigawatts of solar generation and 3.9 gigawatt hours of battery storage systems. Such contracts are intended to ensure predictable revenues while supporting Egypt’s national grid.
Energy analysts say the projects underline Egypt’s intent to position itself as a regional clean energy hub, leveraging its abundant solar resources and strategic location. However, officials continue to stress that meeting the 2030 renewable energy target will require further international cooperation, concessional financing and continued policy support to scale up investment in large renewable and storage projects.
