Egypt Launches $1.8 Billion Renewable Energy Manufacturing Drive

Egypt has taken a major step toward strengthening its renewable energy capabilities by signing new agreements worth $1.8 billion to localize the production of solar components and battery storage systems. Prime Minister Mostafa Madbouly witnessed the signing ceremony and said the deals mark the beginning of a new phase in Egypt’s clean energy manufacturing sector. The government aims to reduce dependence on imported technology and foreign currency while improving long-term energy security.

The agreements involve two major international companies, Norway’s Scatec and China’s Sungrow. Scatec will develop a large-scale solar power project in the Minya governorate, known as the “Energy Valley.” This project is expected to become one of the world’s biggest renewable energy sites, with a generation capacity of 1.7 gigawatts. It will be paired with a battery energy storage system of 4 gigawatt-hours, allowing the facility to supply clean electricity to the national grid throughout the day and night. The combination of solar power and advanced storage technology is intended to stabilize the electricity supply and reduce reliance on conventional fuels.

To support the Energy Valley project, Sungrow will set up a new battery manufacturing plant in the Suez Canal Economic Zone (SCZONE). This will be the first factory in the Middle East and Africa dedicated specifically to producing battery energy storage systems. The plant will cover an area of 50,000 square meters and is expected to produce 10 gigawatt-hours of electricity each year. It will also create around 150 direct jobs. A large share of the production will be used in the Minya solar project, helping establish a local supply chain for renewable energy equipment.

Prime Minister Madbouly said the localization of renewable energy industries is an essential part of Egypt’s green transition strategy. He noted that many factories in the SCZONE already have a local component rate of more than 50 percent. This allows the government to meet increasing energy needs using the Egyptian pound rather than foreign currency. He also highlighted the rapid industrial growth in the zone, with 190 factories now operating and another 150 under construction. These factories are involved in modern industries that were not previously available in Egypt.

According to government officials, the private sector now contributes more than 65 percent of total investments in the country. Egypt aims to achieve an economic growth rate of 7.5 to 8 percent by 2030 by continuing to attract international companies and investing in infrastructure. The new renewable energy agreements are expected to support this long-term vision and build Egypt’s position as a regional center for clean energy manufacturing.