Photo courtesy of Egypt’s Ministry of Electricity and Renewable Energy
The first agreement is a land usufruct contract for a solar power plant and battery storage facility, named Energy Valley, in Minya Governorate, developed by Norwegian renewable energy firm Scatec.
The project also includes the construction of new substations and power transmission lines to supply electricity to the industrial zone in Minya’s Wadi El-Siririya.
Energy Valley is the first project in the region to supply clean and stable electricity 24 hours a day, with 1.7 gigawatts (GW) of alternating current solar photovoltaic power. It is supported by battery storage systems with a capacity of 4 GW per hour, distributed across Minya, Qena, and Alexandria.
Preliminary financing agreements were also signed with the European Investment Bank (EIB), the African Development Bank (AfDB) and the European Bank for Reconstruction and Development (EBRD) for the Energy Valley project.
Scatec also signed a Power Purchase Agreement (PPA) with the Electricity Transmission Company (EETC) to deliver a total capacity of 1.95 GW of solar power and 3.9 GWh of battery energy storage in Egypt.
The second agreement involves establishing a 5,000-square-metre battery energy storage manufacturing plant in Ain Sokhna’s TEDA zone within SCZone, developed by Chinese energy storage provider Sungrow.
The plant will have an annual production capacity of 10 GW per hour when fully operational, part of which will supply the Energy Valley project. Production is scheduled to start in April 2027, and the project is expected to create around 150 direct jobs. Investment figures for each project were not disclosed.
Meanwhile, Prime Minister Mostafa Madbouly inaugurated several other factories and production complexes in the SCZone worth over $190 billion in investments, expected to create 2,700 job opportunities, a cabinet statement said Sunday. The projects operate in logistics, renewables and solar panels, gas heaters, textiles, ready-made clothing, furnishings, flooring, and food and component manufacturing.
The growth of investments in SCZone is part of Egypt’s broader economic narrative, aimed at improving the investment climate and promoting private sector-led growth.
The private sector’s contribution to GDP is projected to reach 11.9 percent, while the share of energy produced from new and renewable sources is expected to reach 42 percent by 2030.
Egypt also plans to double the contribution of foreign direct investment (FDI) to GDP to 4.4 percent, create 1.5 million jobs, support the green transition, and achieve $145 billion in exports.
Annual GDP growth is expected to reach 7.5–8 percent by 2030, while the private sector’s share of investment has already exceeded 65 percent, Madbouly said in a presser following the inaugurations. Around 150 new factories are planned, with 190 already in SCZone.
These agreements are part of the ministry’s strategy to strengthen the renewable energy sector, increase the use of clean energy, reduce carbon emissions, diversify Egypt’s energy sources, and boost the share of renewables in the energy mix, in collaboration with the private sector, according to Electricity Minister Mahmoud Esmat.
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