Norwegian energy company Scatec has signed a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company for a 1GW solar and 100MW/200 megawatt hours (MWh) battery storage project in Egypt.
The agreement, denominated in US dollars, extends for 25 years.
Scatec will be responsible for engineering, procurement and construction and asset management services for the project.
Scatec will also provide ongoing operations and maintenance services to the facility.
Scatec has signed a mandate letter with several development financing institutions to secure concessional financing for the project.
The company anticipates financial close with the lenders and the start of construction of the solar and battery energy storage system hybrid project in the first half of 2025.
Scatec CEO Terje Pilskog stated: “This will be the first hybrid solar and battery project in Egypt and demonstrates Scatec’s strong position as one of the largest renewable energy producers in the country.
“We are pleased to have entered the PPA with Egyptian Electricity Transmission Company. We will now finalise land lease agreements, grid connection agreements and financing, and prepare for construction of the project.”
In another development, SUSI Partners, representing the SUSI Asia Energy Transition Fund, has reached an agreement to acquire the 39MW Dam Nai wind farm in Ninh Thuận province of Vietnam from Scatec.
The transaction also includes the takeover of Scatec’s operating company in Vietnam, which will enable SUSI Partners to pursue further expansion in the region.
In March 2024, Scatec, Hydro Rein and Equinor began commercial operations at the 531MW Mendubim solar facility in Rio Grande do Norte, Brazil – Scatec’s second project in the country.
The solar plant comprised multiple projects and was backed by a 20-year PPA with Alunorte, an alumina supplier largely owned by Hydro.
