Scatec inks PPA with Egypt Aluminium for 1GW solar + storage project
Power Engineering International
Posted on: 14 March 2025
Egypt Aluminium is one of the largest industrial electricity consumers in Egypt and exports approximately 60% of its production to Europe.
Norwegian renewables developer Scatec has signed a 25-year Power Purchase Agreement (PPA) with Egypt Aluminium for a solar and storage project in Egypt.
Egypt Aluminium is one of the largest industrial electricity consumers in Egypt and exports approximately 60% of its production to Europe.
The power supplied from this 1.1GW Solar PV plus 100MW/200MWh battery energy storage project will decarbonise production and ensure Egypt Aluminium meets Europe's Carbon Border Adjustment Mechanism (CBAM) requirements which will be introduced in 2026.
Now that the Scatec has signed the PPA with Egypt Aluminium, work will begin to allocate land, finalise grid connection and secure financing, with the aim to reach financial close and start construction within the next 12 months.
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Scatec CEO Terje Pilskog commented in a statement: “It is a groundbreaking project as it is the first utility scale PPA in the country with an industrial offtaker. I would like to thank all parties involved for making this happen, especially our partners at Egypt Aluminium. Further, our team has shown great persistence and creativity in securing this agreement and bringing new solutions to the market.”
The cost of the project will be approximately $650 million. Scatec owns 100% of the project but is looking to reduce its long-term economic interest by inviting additional equity partners.
Scatec will be the designated EPC service provider, with an EPC share of approximately 90% of total capex, as well as asset manager and operations and maintenance (O&M) service provider.
