Scatec has started building a new renewable energy facility in Egypt. The project includes a solar power plant with a total capacity of 1.1 gigawatts and a battery storage unit with 100 megawatts of output and 200 megawatt-hours of capacity. This is Egypt’s first project to combine large-scale solar power and battery storage in one site.
Electricity from the facility will be sold to the Egyptian Electricity Transmission Company. The contract will last for 25 years.
Construction is taking place in two stages. In the first stage, Scatec plans to complete 561 megawatts of solar generation and the full 100 MW / 200 MWh battery system. The goal is to finish this part in the first half of 2026. The second stage will add another 564 megawatts of solar capacity and is scheduled for completion in the second half of 2026.
To fund the project, Scatec arranged temporary loans. These loans will cover costs during construction before permanent equity is brought in. One loan of $90 million comes from The Arab Energy Fund, due in 2028. Another loan of $30 million is provided by the European Bank for Reconstruction and Development, due in 2027.
Scatec has signed an initial agreement with a group of lenders to provide long-term project financing. Talks are also underway with possible partners to join as equity investors. Both processes are expected to be completed in the near future.
The project is expected to cost $590 million. Around 80 percent of this will be financed through loans that do not require company guarantees. Scatec is responsible for construction, operations, and ongoing maintenance. Its share of the construction cost is about 70 percent of the total, following adjustments to the contract structure.
In parallel, Egypt is also seeing smaller renewable projects. In North Sinai, a solar-powered water pumping station with 1.5 MW capacity is operating in an isolated area. In Matrouh, small solar units with battery backup are being used for local healthcare and education buildings, each below 1 MW.
