Scatec, a world-leader in renewable energy, has recently finalized an innovative power purchase agreement with the Egyptian Electricity Transmission Company. Together, they will create a 12 MWac solar power and battery energy storage system in Egypt. The deal covers the delivery of 1.95 gigawatts (GW) of electric solar. It includes 3.9 gigawatt-hours (GWh) of battery energy storage systems (BESS), marking the largest investment of the kind in the country’s renewable energy portfolio.
The project will engineer, procure, and construct two distinct, stand-alone BESS systems. Together, these systems will drastically improve grid stability and support services. Scatec will create a single, integrated solar and BESS hybrid facility designed to deliver consistent, around-the-clock renewable baseload power to the national grid.
Scatec will be compensated based on the hybrid system’s actual electricity production. This payment is according to a US dollar-denominated, pay-as-produced formula laid out in the Long-Term 25-Year Power Purchase Agreement (PPA). The company will serve as engineer, procure and construct (EPC) manager for these projects. On top of that, it would take on asset management, operations, and maintenance.
While Scatec is the lead developer for this ambitious initiative, they plan to introduce other equity partners. CEO of Scatec, Terje Pilskog, had previously made it clear that this agreement was part of a strategic focus for their company. He said it deepens the firm’s commitment to delivering utility-scale, dependable renewable energy throughout Africa.
“Signing this groundbreaking PPA further cements Scatec’s leading position and commitment to delivering reliable, renewable energy at a large scale in Africa.” – Terje Pilskog
After its success in Egypt, Scatec is on to bigger and better things. The company has recently completed the 15 year Power Purchase Agreement (PPA) with BTG Pactual Comercializadora de Energía S.A. for that plant located in Colombia. These projects in Egypt represent the biggest investment Scatec has ever made. They are an important part of the puzzle as Egypt pursues its national target of producing 42% of its electricity from renewable sources by 2030.
Egypt’s lofty renewable energy targets could be threatened without far greater international assistance, officials have warned. Sungrow recently made big news with a memoranda of understanding to construct a manufacturing plant in the Suez Canal Economic Zone. This facility will produce energy storage batteries, enhancing Egypt’s renewable energy production capacity.
“By integrating advanced solar and battery technologies, we are providing Egypt with sustainable, around-the-clock power and grid stabilising services, supporting both the country’s energy transition and the region’s long-term economic development.” – Terje Pilskog