In a major step forward for Africa’s renewable energy sector, Norwegian developer Scatec ASA has secured a 25-year Power Purchase Agreement with Egypt’s Electricity Transmission Company for a massive 1.95 GW solar photovoltaic project paired with 3.9 GWh of battery energy storage systems. This integrated hybrid initiative, including one large-scale solar-BESS hybrid for round-the-clock baseload power and two standalone BESS facilities for grid support, is set to generate about 6,000 GWh of clean energy annually, marking the continent’s largest solar and storage deployment and Scatec’s biggest investment to date.
Scatec’s Landmark Egypt Renewable Deal
Scatec ASA, a prominent player in emerging market renewables, has finalized a transformative Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC). The deal covers a total solar capacity of 1.95 GW combined with 3.9 GWh of Battery Energy Storage Systems (BESS), positioning Egypt as a leader in large-scale hybrid renewable infrastructure.
The agreement structures the delivery as one integrated solar-plus-BESS hybrid system engineered to supply continuous, around-the-clock renewable baseload power. This hybrid approach addresses intermittency challenges by storing excess daytime solar generation for release during peak demand or non-sunny periods. Complementing this, Scatec will develop two standalone BESS projects focused on delivering critical grid stability services, such as frequency regulation, voltage support, and overall system reliability as Egypt integrates higher shares of variable renewables.
The combined projects represent the largest solar and BESS installation across Africa. Once operational, the facilities are projected to produce approximately 6,000 GWh of renewable electricity each year, equivalent to powering millions of households and displacing significant fossil fuel generation.
Scatec will handle key responsibilities including Engineering, Procurement, and Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services, drawing on its extensive experience from previous large-scale hybrid developments.
The PPA is structured as a 25-year, USD-denominated, pay-as-produced contract tied directly to the electricity output from the hybrid system. This provides revenue stability for the developer while aligning incentives for efficient performance.
Scatec serves as the lead developer and plans to bring in additional equity partners to optimize the ownership structure. More specifics on capital expenditure, detailed EPC scope, and the full financing package will be released upon reaching financial close, targeted for the second half of 2026.
This agreement builds on Scatec’s established footprint in Egypt, where the company already operates substantial solar assets and has advanced other hybrid and wind initiatives. The deal underscores Egypt’s push toward energy security through renewables, supported by favorable solar resources and strategic grid enhancements.
Key Project Highlights
Total Solar Capacity : 1.95 GW
Total BESS Capacity : 3.9 GWh
Annual Energy Generation : ~6,000 GWh
Structure : 1 integrated hybrid solar-BESS system + 2 standalone BESS projects
PPA Term : 25 years, USD-denominated, pay-as-produced
Developer Role : Scatec (EPC, AM, O&M)
Expected Financial Close : Second half of 2026
The initiative highlights the growing viability of utility-scale solar paired with substantial storage to deliver dispatchable, reliable clean power in high-growth markets. It supports Egypt’s broader goals of expanding renewable penetration, stabilizing the national grid, and fostering sustainable economic growth across the region.
Disclaimer: This is a news report based on publicly available information and does not constitute financial, investment, or energy advice.