Latest news with #Scatec
CNN
7 days ago
- Business
- CNN
Solar and batteries could help Egypt beat its blackouts
Egypt's first large-scale hybrid solar and battery plant has begun construction as the country looks to its abundant sunshine to help fix its energy crisis. Obelisk, located in Nagaa Hammadi, will combine 1.1 gigawatts of solar production with 200 megawatt hours of battery storage. The $590 million project is being built by Scatec, a Norwegian renewable energy company mostly working in emerging markets. Scatec already has four other renewable projects in Egypt, and the north African country is aiming to increase its share of renewable production from 13% in 2023, to 42% by 2030. Prev Next Around three quarters of Egypt's electricity comes from gas. But in recent years, as its domestic gas production fell, it became reliant on imports and rising gas prices plunged Egypt into a series of blackouts. Renewable projects are becoming increasingly attractive to emerging economies, which tend to be hit the hardest by rising fuel prices, Terje Pilskog, CEO of Scatec told CNN. 'With renewables, you are not dependent on importing fuels,' he said. 'It is also about predictability.' Sixty percent of the world's best land for solar development is in Africa, according to the industry body Global Solar Council, but in 2023, only 3% of the continent's energy came from solar. In 2024, 75% of all new solar projects were built in South Africa or Egypt, however 18 countries across Africa have the potential to install more than 100 MW solar projects in 2025, compared to two in 2024. The continent is aiming to reach 300 GW of solar capacity by 2030, which is more than the current capacity of the US. Although Egypt is looking for new domestic gas resources, it has set ambitious renewable energy targets, and hosted the COP27 climate conference in 2022. But the driving force behind these new renewable projects is economic, not environmental, said Karem Elgendy, executive director of Carboun Institute Elgendy, an energy and climate think tank for the Middle East and North Africa. With an overreliance on gas, and with declining production from its flagship Zohr gas field, Egypt is struggling to keep the lights on. Egypt issued a tender to import nearly two million tons of fuel oil in May and June to meet its electricity needs as gas imports became too expensive. The summer brings high demand, as air conditioning units are turned on to combat the intense heat – average highs can reach 42 Celsius (108 Fahrenheit) in the south. Prime Minister Mostafa Madbouly recently urged people to curb their energy usage to avoid blackouts. Whilst Egypt's summer heat increases its electricity demand, it could also offer a solution. The south of Egypt, where Scatec's new project is breaking ground is 'in the magic solar belt,' said Elgendy. According to the Global Solar Atlas, Egypt has the fourth-highest solar PV (photovoltaic) potential of any country. Historically, solar energy has been hampered by its intermittency — solar panels only work during the day and large-scale battery storage has been too expensive. However, falling battery prices, combined with the lower operational and installation costs of solar power means that projects that combine solar generation with battery storage, like Obelisk, could overcome this problem. Because of its size and prime location, Obelisk, Elgendy said, 'can demonstrate value for the rest of the region, for the rest of the world, that 'solar plus batteries' can take away this primary weakness.' The cost of battery storage projects has dropped by 89% between 2010 and 2023, driven by growing production capacity, especially in China. This drop, Elgendy said, means that by 2027 solar plus battery plants will be 'the cheapest form of (any kind of electricity) generation.' A report by the Global Solar Council said that the availability of energy storage is a 'major driver for increased solar installations globally.' However, whilst global battery storage capacity hit 363 gigawatt hours (GWh) in 2024, Africa only has 1.6 GWh. Whilst battery prices have dropped and solar is cheap to operate, these plants still need large investments to build, and the money can be hard to find, Elgendy said, adding that the 'risk premium' of investing in the developing world means that these projects are more expensive to build in Africa. The continent attracted only 3% of global energy investments in 2024. Obelisk will receive $479.1 million in funding from the European Bank for Reconstruction and Development, the African Development Bank, and British International Investment. The first 561 MW of solar power and the full battery capacity are due to be online in the first half of 2026, and reach the full 1.1 gigawatt capacity by the end of the year.
Zawya
09-07-2025
- Business
- Zawya
Egypt: Egyptalum, Scatec's arm to build $650mln solar plant for Nagaa Hammadi Complex
Arab Finance: Egypt Aluminum Company (Egyptalum) has signed an agreement with a project company affiliated with Norway's Scatec to establish a 1,000-megawatt solar power plant dedicated to supplying the Nagaa Hammadi aluminum complex with clean energy, as per a statement. The project will be carried out over 24 months with a total investment estimated at $650 million. The agreement was signed in the presence of Minister of Public Business Sector Mohamed Shimi and Norwegian Ambassador to Cairo Hilde Klemetsdal. The solar plant will be built in two consecutive phases, each with a 500-megawatt capacity, along with storage batteries totaling up to 200 megawatts. The project will be fully financed and operated by Scatec under a power purchase agreement (PPA), providing a substantial portion of Egypt Aluminum's energy needs. Shimi said the project marks a milestone for Egypt's aluminum industry and aligns with the government's broader strategy to transition to renewable energy. The minister also described the partnership as a successful model for public-private cooperation with international investors and reaffirmed the ministry's support for such ventures. For her part, Klemetsdal welcomed the agreement as a testament to the strong and growing relationship between Egypt and Norway. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
08-07-2025
- Business
- Zawya
Egyptalum signs agreement with Scatec to develop solar power plant in Nagaa Hammadi
Egypt - Minister of Public Enterprises Sector Mohamed Shimi met with Norway's Ambassador to Egypt and Libya, Hilde Klemetsdal, and her accompanying delegation at the ministry's headquarters in the New Administrative Capital, as part of efforts to strengthen bilateral cooperation in renewable energy. During the meeting, the minister and ambassador witnessed the signing of an agreement between Egyptalum — a subsidiary of the Metallurgical Industries Holding Company — and a newly established project company affiliated with Norwegian renewable energy firm Scatec. The agreement marks the official launch of a solar power project to supply clean electricity to Egyptalum's aluminum complex in Nagaa Hammadi. The solar power plant, with a total capacity of 1,000 megawatt-hours, will be implemented over 24 months in two consecutive phases, each generating 500 megawatt-hours. The project will also include the installation of battery storage systems with a total capacity of up to 200 megawatts. With an estimated total investment of approximately $650 million, the project will be fully financed, built, and operated by Scatec under a Power Purchase Agreement (PPA). The plant will supply a significant share of Egyptalum's energy needs, reducing dependence on conventional power sources. Minister Shimi welcomed Ambassador Klemetsdal at the outset of the meeting and emphasized the importance of the strategic partnership between Egypt and Norway, particularly in the fields of green transition and clean energy. He expressed his hope for further cooperation with leading Norwegian companies, given Norway's global expertise in renewable energy and environmental technologies. He described the project as a major milestone for Egypt's aluminum industry, aligning with the state's strategy to expand renewable energy use and the political leadership's directives to promote environmental sustainability and improve resource efficiency. Shimi noted that the project exemplifies successful cooperation between the public and private sectors and international investors. Key objectives include reducing operational costs at the aluminum complex, boosting production efficiency, enhancing the competitiveness of Egyptian exports, cutting traditional energy use and carbon emissions, and meeting international sustainability standards. He added that these goals will enable Egyptalum to strengthen its position in global markets, where it already exports more than 50% of its production—primarily to the European Union. The minister also highlighted that the partnership with Scatec reflects international investors' growing confidence in the Egyptian market and their willingness to contribute to major national projects that deliver both environmental and economic value. He reaffirmed the Ministry's full support for partnerships with both domestic and international private sector players. Ambassador Klemetsdal praised the strength of Egyptian-Norwegian relations and described the solar project as a model of productive cooperation between the two nations. She stressed that the initiative supports Egypt's clean energy transition and reflects the growing interest of Norwegian companies in the Egyptian market, especially in key sectors such as renewable energy.
Daily News Egypt
07-07-2025
- Business
- Daily News Egypt
Egyptalum signs agreement with Scatec to develop solar power plant in Nagaa Hammadi
Minister of Public Enterprises Sector Mohamed Shimi met with Norway's Ambassador to Egypt and Libya, Hilde Klemetsdal, and her accompanying delegation at the ministry's headquarters in the New Administrative Capital, as part of efforts to strengthen bilateral cooperation in renewable energy. During the meeting, the minister and ambassador witnessed the signing of an agreement between Egyptalum — a subsidiary of the Metallurgical Industries Holding Company — and a newly established project company affiliated with Norwegian renewable energy firm Scatec. The agreement marks the official launch of a solar power project to supply clean electricity to Egyptalum's aluminum complex in Nagaa Hammadi. The solar power plant, with a total capacity of 1,000 megawatt-hours, will be implemented over 24 months in two consecutive phases, each generating 500 megawatt-hours. The project will also include the installation of battery storage systems with a total capacity of up to 200 megawatts. With an estimated total investment of approximately $650 million, the project will be fully financed, built, and operated by Scatec under a Power Purchase Agreement (PPA). The plant will supply a significant share of Egyptalum's energy needs, reducing dependence on conventional power sources. Minister Shimi welcomed Ambassador Klemetsdal at the outset of the meeting and emphasized the importance of the strategic partnership between Egypt and Norway, particularly in the fields of green transition and clean energy. He expressed his hope for further cooperation with leading Norwegian companies, given Norway's global expertise in renewable energy and environmental technologies. He described the project as a major milestone for Egypt's aluminum industry, aligning with the state's strategy to expand renewable energy use and the political leadership's directives to promote environmental sustainability and improve resource efficiency. Shimi noted that the project exemplifies successful cooperation between the public and private sectors and international investors. Key objectives include reducing operational costs at the aluminum complex, boosting production efficiency, enhancing the competitiveness of Egyptian exports, cutting traditional energy use and carbon emissions, and meeting international sustainability standards. He added that these goals will enable Egyptalum to strengthen its position in global markets, where it already exports more than 50% of its production—primarily to the European Union. The minister also highlighted that the partnership with Scatec reflects international investors' growing confidence in the Egyptian market and their willingness to contribute to major national projects that deliver both environmental and economic value. He reaffirmed the Ministry's full support for partnerships with both domestic and international private sector players. Ambassador Klemetsdal praised the strength of Egyptian-Norwegian relations and described the solar project as a model of productive cooperation between the two nations. She stressed that the initiative supports Egypt's clean energy transition and reflects the growing interest of Norwegian companies in the Egyptian market, especially in key sectors such as renewable energy.
Zawya
03-07-2025
- Business
- Zawya
BII backs Egypt's transition into renewable energy hub via $300mln agreements
Arab Finance: British International Investment (BII), the UK's development finance institution and impact investor, signed agreements at a combined value exceeding $300 million to support two renewable energy projects in Egypt, according to an emailed press release. These projects are the 1.1-GW Gulf of Suez Wind Farm and a 1-GW integrated solar and battery storage project with Scatec. The deals come as part of BII's investment plan to boost Egypt's energy transition and build climate-resilient infrastructure that stimulates growth in North African countries. The Gulf of Suez Wind Farm marks Africa's largest onshore wind development, with total investments of $1.05 billion. It is expected to generate over 4,300 gigawatt-hour (GWh) annually, helping to eliminate 2.2 million tons of CO? emissions yearly. BII's $190 million investment comes within a broader $707 million in long-term debt financing with a consortium of development finance institutions (DFIs). The consortium includes the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), the German Investment and Development Company (DEG), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP). The project builds on Egypt's Nexus of Water, Food & Energy (NWFE) program and will create over 10,000 jobs, placing it in the top 30% of BII's power portfolio in terms of employment-to-cost ratio. Additionally, BII inked a contract to co-finance Egypt's first integrated solar photovoltaic (PV) and battery energy storage system (BESS), in partnership with Scatec, AfDB, and EBRD. The $475.6 million project, which represents 80% of the total capital cost, will deliver 1 GW of solar PV capacity and 200 MWh of battery storage. BII will provide a $100 million concessional loan and a $15 million grant to cut the cost of the BESS component and make the project more viable, attracting private investment and setting a model for future deals. Sherine Shohdy, Head of Egypt Office and Coverage Director, BII, commented: "Through our capital partnerships, we are proud to deliver new infrastructure that will provide affordable and reliable, low-carbon power and unlock thousands of green jobs. Our goal is to deliver impact at scale, supporting Egypt's renewable energy ambitions and the resilience of its wider economy." Egypt is a key partner for BII, with an updated portfolio size of more than $708 million, reflecting an ongoing commitment to the region's climate agenda. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
