Scatec secures power purchase deal for Egypt's first hybrid solar, battery project

Scatec ASA

12/09/2024 14:58

By Nora Buli
       OSLO, Sept 12 (Reuters) - Norway-based renewable energy
developer Scatec  SCATC.OL  said on Thursday it has signed a
25-year power purchase agreement (PPA) with Egyptian Electricity
Transmission Company (EETC) for Egypt's first hybrid solar power
and battery storage project.
    Scatec signed a U.S. dollar-denominated 25-year PPA with
EETC for a 1 gigawatt (GW) solar power plant and 100 megawatt
(MW) battery storage project (BESS), it said.
    The company did not disclose the financial value of the
contract.
    "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," CEO Terje
Pilskog said in a statement.
    Scatec will now finalise land lease and grid connection
agreements, and expects to reach financial close with lenders
and to start construction of the solar and BESS hybrid project
in the first half of 2025, it added.
    In 2017, the Norwegian company already signed a 25-year PPA
with EETC for six solar plants near Aswan, in Upper Egypt,
totalling 380 MW of capacity, which has been connected to the
grid since 2019.
    Egypt, which faces declining domestic gas production and
rising electricity consumption, is aiming for a 42% share of
renewable energy in its power generation mix by 2030, up from
11.5% in 2023.

 (Reporting by Nora Buli in Oslo, additional reporting by Marwa
Rashad in London; editing by Terje Solsvik)
 ((Nora.Buli@thomsonreuters.com; (+47) 21 04 05 56; Reuters
Messaging: nora.buli.thomsonreuters.com@reuters.net))