Scatec, a Norway-based renewable energy company, has signed a 25-year Power Purchase Agreement (PPA) with Egypt Aluminium. The agreement covers a 1.1-gigawatt (GW) solar photovoltaic (PV) power plant with a 100-megawatt (MW) battery energy storage system (BESS) with 200-megawatt hours (MWh) of storage.
Egypt Aluminium is the largest industrial electricity consumer in Egypt. The solar and storage project will help the company reduce its carbon emissions and meet the European Union’s Carbon Border Adjustment Mechanism (CBAM) requirements, which take effect in 2026.
Scatec plans to start construction within 12 months. The total cost of the project is estimated at $650 million. Around 80% will be funded through project debt, while the remaining amount will come from equity investments. Scatec owns 100% of the project but plans to bring in additional equity partners. The company will be responsible for engineering, procurement, and construction (EPC), as well as asset management and operations.
Egypt has several renewable energy projects in operation. The Benban Solar Park in Aswan has a total installed capacity of 1.8 GW and is one of the largest solar parks in the world. The Gabal El-Zeit Wind Farm has a total capacity of 580 MW and supplies power to the national grid.
In addition to large projects, smaller renewable energy initiatives are being developed. The New Administrative Capital has installed rooftop solar panels on government buildings, with a total capacity of 20 MW. These installations provide clean electricity for administrative offices.
Egypt’s Ministry of Irrigation has introduced solar-powered water pumps for farmers. More than 500 small-scale solar irrigation systems have been installed in different governorates to reduce reliance on diesel-powered pumps. The Cairo Metro has started using solar energy at select stations. A pilot project at one station has installed 300 kilowatts (kW) of solar panels to reduce electricity consumption from the grid.
