At a Glance
- Scatec signs landmark Egypt PPA for 1.95 GW solar and 3.9 GWh battery storage.
- The project represents Scatec’s largest investment, strengthening Egypt’s utility-scale clean energy leadership.
- 25-year dollar-denominated PPA secures predictable revenue and long-term operational control.
Scatec ASA, a leading renewable energy solutions provider, has secured a landmark renewable energy agreement in Egypt, signing a long-term Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company that will anchor one of Africa’s largest solar and battery storage developments.
The deal covers 1.95 gigawatts of solar capacity paired with 3.9 gigawatt-hours of battery energy storage, marking the largest single investment in Scatec’s history.
The project positions Egypt as a regional leader in utility-scale renewable energy while underscoring growing investor confidence in Africa’s clean power infrastructure.
Hybrid solar and battery systems for power supply
At the core of the agreement is an integrated solar-plus-battery hybrid plant engineered to deliver continuous, around-the-clock renewable baseload electricity—an increasingly critical requirement for fast-growing emerging markets.
In addition, Scatec will develop two standalone battery energy storage system (BESS) facilities designed to enhance grid stability, manage peak demand, and support frequency regulation.
Once operational, the combined assets are expected to supply approximately 6,000 gigawatt-hours of clean electricity annually, strengthening Egypt’s national grid while reducing reliance on fossil fuels.
Long-term Dollar-denominated revenue structure
Under the terms of the deal, Scatec will be compensated through a 25-year, USD-denominated, pay-as-produced PPA, providing predictable long-term cash flows tied directly to energy output.
The company will also serve as Engineering, Procurement and Construction (EPC) contractor, alongside Asset Management (AM) and Operations and Maintenance (O&M) provider—allowing Scatec to retain operational control across the project lifecycle.
Chief Executive Officer Terje Pilskog described the agreement as a milestone for both Scatec and Africa’s renewable energy market, noting that the project combines advanced solar and battery technologies to deliver reliable, dispatchable clean power at scale.
Details related to capital expenditure, EPC scope, and financing structure are expected to be finalized at financial close in the second half of 2026. The development will leverage Scatec’s experience across large-scale solar and battery projects in emerging markets.
Scatec’s expanding global footprint
Headquartered in Oslo, Norway and listed on the Oslo Stock Exchange (SCATC), Scatec operates across Africa, Latin America, Asia, and Europe, with a focus on emerging markets.
The company currently has 6.2 GW in operation or under construction and is targeting nearly 10 GW of installed capacity by 2030, reinforcing its role as a long-term driver of the global energy transition.
