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Egypt Signs $1.8bn Renewable Energy Agreements to Boost Power Supply

Egypt has sealed renewable energy agreements valued at about $1.8 billion as part of its drive to expand clean power generation and reduce pressure on its electricity sector.

State television reported that the deals involve international partners, including Norway’s renewable energy company Scatec and China’s Sungrow. The projects focus on large-scale solar power generation and energy storage, key areas in Egypt’s long-term energy strategy.

One of the major projects will see Scatec develop a solar power plant in Minya State, Upper Egypt. The facility is expected to produce up to 1.7 gigawatts of electricity and will be supported by battery storage systems with a combined capacity of 4 gigawatt hours. Egyptian authorities say the project will help stabilise power supply and improve energy reliability.

In a related move, Sungrow plans to establish a factory in the Suez Canal Economic Zone to manufacture energy storage batteries. Part of the factory’s output will be used to support the Minya solar project, linking local manufacturing with power generation.

The agreements also include long-term power purchase arrangements. Scatec said it signed contracts covering nearly 2 gigawatts of electricity generation capacity alongside large-scale battery storage systems.

Egypt aims to generate 42% of its electricity from renewable sources by 2030. However, officials have warned that meeting this target will require stronger international financing and technical support, especially for capital-intensive projects such as energy storage.