Egypt on Sunday signed agreements with Norway’s Scatec and China’s Sungrow for two renewable energy projects and local manufacturing, with combined investments exceeding $1.8 billion, as the government seeks to expand clean power generation and ease pressure on natural gas supplies.
Prime Minister Mostafa Madbouly oversaw the signing ceremonies, according to a Cabinet statement, which said the projects would be implemented in coordination with the Electricity Ministry and the General Authority for the Suez Canal Economic Zone. The two companies will be granted land under usufruct arrangements.
Renewable energy currently accounts for about 5% of Egypt’s electricity consumption, based on the latest Electricity Ministry data for 2023. The government aims to raise that share to 42% by 2030 and more than 60% by 2040.
Scatec will build a large-scale solar power plant in Minya governorate under the name “Energy Valley,” the statement said, along with battery energy storage systems.
Under the agreements, Scatec will develop a large-scale solar power project in Minya governorate, known as the “Energy Valley,” including battery energy storage systems.
The project will have a solar photovoltaic generation capacity of 1.7 gigawatts (AC), supported by battery storage systems with a combined capacity of 4 gigawatt-hours, geographically distributed across Minya, Qena and Alexandria, the statement said. It will also include new substations and dedicated transmission lines and is intended to provide stable power for the industrial zone in Wadi El-Saririya in Minya.
Sungrow will establish an energy storage battery manufacturing facility in the Suez Canal Economic Zone, with part of its production earmarked for the Minya solar project.
The factory will cover 50,000 square metres and aims to localise the production of advanced energy storage systems. Output is expected to reach 10 gigawatt-hours annually at full capacity, with production scheduled to begin in April 2027, the statement said.
“Localizing industries linked to renewable energy is a key pillar for strengthening energy security and the green transition, and attracting such high-quality investments reflects global companies’ confidence in Egypt’s investment climate,” Madbouly said.
The government has increasingly turned to renewable energy as domestic natural gas production has declined since 2023, tightening supplies to the power and industrial sectors and prompting periods of electricity load-shedding.
Gas production plans
Separately, the Ministry of Petroleum and Mineral Resources plans to start producing about 65 million cubic feet of natural gas per day from three concession sites in the Gulf of Suez and the Western Desert during January, a source familiar with the exploration file at the ministry told Al Manassa.
The source, who asked not to be named, said the Egyptian Natural Gas Holding Co. (EGAS) is coordinating with partners to connect the new output to the national gas grid. The targeted volumes will come online in three phases: 20 million cubic feet per day, then an additional 30 million, then another 15 million, the source said, adding that concession-holding companies have completed drilling programs and are currently laying pipelines to transport production.
The Petroleum Ministry said that around 1.2 billion cubic feet of natural gas and more than 200,000 barrels of crude oil and condensates were added to domestic production in 2025, contributing to a reduction in Egypt’s oil and gas import bill.
Domestic gas production stands around 4.2 billion cubic feet per day, enough to meet about 65% of local market needs for gas used across sectors, including industry and electricity generation.
