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Daily News Egypt
28-05-2025
- Business
- Daily News Egypt
Egypt approves $388m in private renewable energy projects for direct industrial supply
Egypt's Minister of Electricity and Renewable Energy, Mahmoud Esmat, has awarded qualification certificates to four companies selected to operate under the country's newly adopted private-to-private (P2P) power agreement model. The initiative allows private energy producers to generate and sell electricity directly to industrial consumers, marking a transformative step in Egypt's energy liberalization strategy and commitment to sustainable development. The approved projects represent a combined capacity of 400 megawatts and total investments of $388m. Each company will build its own renewable energy power plant and supply electricity directly to industrial clients, while paying a transmission fee to the Egyptian Electricity Transmission Company (EETC). These agreements are structured with no financial burden on the state and do not require sovereign guarantees. Among the newly qualified projects, Neptune for Electricity Production and Sales will supply solar power to the Suez Steel Plant. AMEA Power will provide electricity from its solar facility to the Suez Canal Container Terminal and Bivar Group for Chemicals. TAQA PV is set to supply Ezz Steel through a hybrid solar and wind power station, while ENARA for Renewable Energy Services will generate electricity from a hybrid facility for both the Helwan Fertilizers plant and the Alamein Silicon Products Complex. Minister Esmat stated that the initiative is being implemented in line with Egypt's Electricity Law, which is designed to open the market to competition, enhance efficiency, and attract private investment. He emphasized that liberalizing the electricity sector is a key strategic step in building a dynamic, competitive energy market that reduces costs, improves service quality, and strengthens Egypt's role as a regional energy hub. The Minister highlighted that the P2P framework enables industrial consumers to secure reliable, renewable electricity while contributing to their climate goals. These projects will also allow companies to certify their clean energy usage and reduce emissions, facilitating access to green export markets. Esmat noted that the Egyptian Electric Utility and Consumer Protection Regulatory Agency had completed its review of qualification submissions from seven companies, each proposing 100-megawatt renewable energy projects. The evaluation process was conducted in collaboration with a global consulting firm and the European Bank for Reconstruction and Development (EBRD), which helped develop the regulatory guidelines and legal framework for the P2P agreements. He reaffirmed the Ministry's commitment to building a transparent and investor-friendly environment that enables both producers and consumers to actively participate in Egypt's energy transition. These efforts are integral to supporting the national green economy agenda, expanding renewable energy capacity, and modernizing the country's power infrastructure.
Egypt Today
28-05-2025
- Business
- Egypt Today
Egypt Greenlights Private Sector Renewable Projects in $388M Move Toward Energy Market Reform
The Egyptian Ministry of Electricity and Renewable Energy has awarded qualification certificates to four private-sector renewable energy projects, comprising both solar and wind technologies. With a total generation capacity of 400 megawatts and a combined investment of $388 million, these projects mark a major milestone in Egypt's strategy to liberalize its electricity market and encourage private sector involvement in clean energy. According to the ministry's statement, the approved companies will be responsible for constructing the power plants and directly selling the generated electricity to industrial consumers. The electricity will be transmitted through the national grid by the Egyptian Electricity Transmission Company, which will receive a transmission fee. Crucially, this model requires no financial contributions or guarantees from the government, reducing the public sector's burden and empowering private entities to take a leading role in the country's energy transition. The selected projects include Neptune for Electricity Production and Sales, which will power the Suez Steel factory using solar energy. AMEA Power will supply electricity from a solar station to the Suez Canal Container Terminal and Bivar Chemicals. Meanwhile, Taqa PV will deliver energy to Ezz Steel via a hybrid solar and wind facility. Enara for Renewable Energy Services will provide electricity to both the Helwan Fertilizer Factory and the Alamein Silicon Products Complex through a similar hybrid system. Minister of Electricity Mahmoud Esmat explained that the Electricity Utility and Consumer Protection Regulatory Agency evaluated a total of seven private-sector proposals, each aiming to build 100-megawatt renewable energy plants. These reviews were conducted in cooperation with a global consultancy and the European Bank for Reconstruction and Development (EBRD), which also helped develop the regulatory framework and agreements enabling private sector engagement through the Power-to-Power (P2P) system. Esmat highlighted that this initiative is a key component of a larger governmental agenda grounded in Egypt's Electricity Law. The law is designed to create a competitive electricity market by allowing producers, consumers, and distributors to operate in a more dynamic and open environment. This shift is expected to enhance service quality, lower electricity costs, and attract long-term investments into Egypt's energy infrastructure, positioning the country as a regional leader in renewable energy development.
Egypt Today
07-05-2025
- Business
- Egypt Today
Scatec Initiates $590 Million Solar Project in Egypt with Energy Storage
CAIRO - 7 May 2025: Scatec has officially launched the construction of its $590 million, 1.1 GW Obelisk solar project in Nagaa Hammadi, Egypt, which will also include 200 MWh of battery storage. The project, which is planned in two phases, is expected to be fully operational by the second half of 2026. The first phase will introduce 561 MW of solar capacity and 200 MWh of battery storage by mid-2026, while the second phase will add another 564 MW of solar power later that year. The Obelisk project will be connected to Egypt's national grid through 220 kV transmission lines, with a construction contract signed last month between the Egyptian Electricity Transmission Company (EETC) and a consortium that includes Kharafi National and Power Ring. In December 2024, the project was granted a golden license, a significant step in its development. To fund the initiative, Scatec has secured $120 million in equity bridge loans, with the project's equity injections deferred until the completion of construction. The Arab Energy Fund will contribute $90 million, and the European Bank for Reconstruction and Development (EBRD) will add $30 million. Additionally, Scatec has entered into a mandate for long-term, non-recourse debt, covering 80 percent of the project's total capital expenditure, sourced from a group of development finance institutions. Scatec has also secured a Power Purchase Agreement (PPA) with the EETC, a 25-year USD-denominated contract backed by a sovereign guarantee, ensuring the project's financial viability for decades to come.
Zawya
06-05-2025
- Business
- Zawya
Scatec starts construction of large-scale hybrid solar and battery project in Egypt
Norway's Scatec has commenced construction of its 1.1 gigawatt (GW) Obelisk solar and 100 megawatts (MW)/200 megawatt-hours (MWh) battery storage project in Egypt, marking the Arab country's first large-scale hybrid solar and battery energy storage development. The energy will be sold under a USD-denominated 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), backed by a sovereign guarantee, the company said in a press statement. The statement said the first phase of 561 MW solar + 100 MW/200 MWh battery storage is targeted to reach commercial operational date (COD) in the first half of 2026 and the second phase of 564 MW solar in the second half of 2026. Scatec has also signed equity bridge loans (EBL) of $120 million for the project, postponing the project equity injections to the end of the construction period. A $90 million EBL will be provided by The Arab Energy Fund with maturity in the second quarter 2028 and another $30 million EBL by the European Bank for Reconstruction and Development (EBRD) with maturity in the first quarter 2027. The company has further signed a mandate letter with a consortium of development finance institutions for the long-term non-recourse project debt at attractive terms, with financial close expected in the next few months. It is also in advanced discussions with potential equity partners, expected to conclude in the same timeframe. 'We are proud to break ground on Egypt's first hybrid solar and battery project, building on our proven track record with similar developments. Egypt has ambitious targets to build out significant renewable energy capacity the coming years, and this milestone further strengthens Scatec's position as a leading renewable energy producer in the country,' said Scatec CEO Terje Pilskog. Total capex for the project is approximately $590 million to be partly financed by a targeted 80 percent non-recourse long-term project debt. Scatec will deliver Engineering, Procurement and Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services for the project. Scatec's EPC scope is approximately 70 percent of total capex, reduced from previous communication due to optimisation of the EPC structure but with unchanged gross profit to Scatec. (Writing by Deva Palanisamy; Editing by Anoop Menon) ( Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.
Egypt Today
15-04-2025
- Business
- Egypt Today
Prime Minister Madbouly Inspects 650-Megawatt Wind Power Plant in Ras Ghareb
CAIRO - 15 April 2025: Prime Minister, Mostafa Madbouly, visited a 650-megawatt wind power plant in Ras Ghareb, as part of his tour of renewable energy projects in the Red Sea Governorate. The inspection reflects Egypt's ongoing efforts to strengthen its renewable energy infrastructure and transition toward a more sustainable and diversified energy mix. During the tour, Minister of Electricity and Renewable Energy Mahmoud Esmat reaffirmed the government's strong focus on increasing the use of renewable energy, reducing carbon emissions, and diversifying power sources. He noted that Egypt's national energy strategy aims to raise the contribution of renewable energy to over 42 percent of the electricity mix by 2030 and 65 percent by 2040. The strategy also seeks to maximize returns from Egypt's natural resources, particularly in the field of new and renewable energy generation. The minister announced that the board of the Egyptian Electric Utility and Consumer Protection Regulatory Agency has approved the selection of eligible producers and industrial consumers to operate under private sector agreements known as 'P2P' (Producer-to-Consumer Power Purchase Agreements). These agreements allow producers to build power stations and sell electricity directly to industrial consumers. Producers will pay a transmission fee to the Egyptian Electricity Transmission Company, while the government will not bear any costs or offer sovereign guarantees. Esmat emphasized the agency's commitment to the Electricity Law, which aims to liberalize the electricity market, promote fair competition among all stakeholders—including producers, consumers, and distributors—and enhance regulatory oversight to ensure transparency and market fairness. This approach is designed to create a more attractive investment climate for the private sector, improve electricity service quality, and reduce costs for industrial users.
