Norwegian renewable vitality developer Scatec has signed a 25-year energy buy settlement (PPA) with the Egyptian Electrical energy Transmission Firm (EETC) for the nation’s first hybrid solar energy and battery storage mission.
The deal covers a one-gigawatt solar energy plant paired with a 100-megawatt battery storage system.
Whereas Scatec didn’t disclose the contract’s monetary phrases, CEO Terje Pilskog famous the importance of the mission, calling it “a testomony to the corporate’s rising function as a number one renewable vitality producer in Egypt.”
Scatec is now working to finalize the land lease and grid connection agreements, with plans to safe financing and start building within the first half of 2025.
This newest enterprise follows a 2017 PPA between Scatec and EETC for six photo voltaic crops in Higher Egypt close to Aswan, which have generated 380 MW of energy since they turned operational in 2019.
A PPA is a long-term contractual association between a renewable vitality provider and a purchaser, on this case the federal government. PPAs be sure that the provider supplies electrical energy at a hard and fast fee for a set time period.
As Egypt grapples with dwindling pure gasoline provides and rising electrical energy demand, the federal government is aiming for renewables to make up 42 p.c of its vitality combine by 2035, up from 11.5 p.c in 2023.