Scatec Signs PPA for 1.95 GW Solar and 3.9 GWh BESS Project in Egypt

Norwegian renewable energy company Scatec ASA has signed a long-term Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for the development of large-scale solar and battery energy storage projects in Egypt.

The agreement covers a total capacity of 1.95 GW of solar power and 3.9 GWh of Battery Energy Storage Systems (BESS). Under the PPA, Scatec will develop an integrated solar and BESS hybrid project designed to supply round-the-clock renewable baseload power. In addition, the company will construct two standalone BESS facilities to provide grid stability and ancillary support services.

According to Scatec, the combined projects will represent the largest solar and battery storage installation in Africa and mark the biggest investment in the company’s history.

Commenting on the development, Scatec Chief Executive Officer Terje Pilskog said the agreement reinforces the company’s commitment to delivering reliable, utility-scale renewable energy solutions across the African continent. He added that the integration of advanced solar and battery technologies will support Egypt’s energy transition while strengthening grid resilience and enabling long-term economic growth.

The projects will operate under a 25-year, USD-denominated, pay-as-produced PPA, with revenues linked to electricity generated by the hybrid system. Once operational, the facilities are expected to produce around 6,000 GWh of renewable electricity annually.

Scatec will be responsible for Engineering, Procurement and Construction (EPC), as well as Asset Management and Operations and Maintenance (O&M) services. The company said it will leverage its experience from similar large-scale hybrid and storage projects to ensure efficient execution and long-term performance.

As the lead developer, Scatec plans to bring in additional equity partners. Details related to capital expenditure, EPC scope and the financing structure are expected to be announced at financial close, which is targeted for the second half of 2026.