Latest news with #NagaaHammadi
CNN
5 days ago
- Business
- CNN
Solar and batteries could help Egypt beat its blackouts
Egypt's first large-scale hybrid solar and battery plant has begun construction as the country looks to its abundant sunshine to help fix its energy crisis. Obelisk, located in Nagaa Hammadi, will combine 1.1 gigawatts of solar production with 200 megawatt hours of battery storage. The $590 million project is being built by Scatec, a Norwegian renewable energy company mostly working in emerging markets. Scatec already has four other renewable projects in Egypt, and the north African country is aiming to increase its share of renewable production from 13% in 2023, to 42% by 2030. Prev Next Around three quarters of Egypt's electricity comes from gas. But in recent years, as its domestic gas production fell, it became reliant on imports and rising gas prices plunged Egypt into a series of blackouts. Renewable projects are becoming increasingly attractive to emerging economies, which tend to be hit the hardest by rising fuel prices, Terje Pilskog, CEO of Scatec told CNN. 'With renewables, you are not dependent on importing fuels,' he said. 'It is also about predictability.' Sixty percent of the world's best land for solar development is in Africa, according to the industry body Global Solar Council, but in 2023, only 3% of the continent's energy came from solar. In 2024, 75% of all new solar projects were built in South Africa or Egypt, however 18 countries across Africa have the potential to install more than 100 MW solar projects in 2025, compared to two in 2024. The continent is aiming to reach 300 GW of solar capacity by 2030, which is more than the current capacity of the US. Although Egypt is looking for new domestic gas resources, it has set ambitious renewable energy targets, and hosted the COP27 climate conference in 2022. But the driving force behind these new renewable projects is economic, not environmental, said Karem Elgendy, executive director of Carboun Institute Elgendy, an energy and climate think tank for the Middle East and North Africa. With an overreliance on gas, and with declining production from its flagship Zohr gas field, Egypt is struggling to keep the lights on. Egypt issued a tender to import nearly two million tons of fuel oil in May and June to meet its electricity needs as gas imports became too expensive. The summer brings high demand, as air conditioning units are turned on to combat the intense heat – average highs can reach 42 Celsius (108 Fahrenheit) in the south. Prime Minister Mostafa Madbouly recently urged people to curb their energy usage to avoid blackouts. Whilst Egypt's summer heat increases its electricity demand, it could also offer a solution. The south of Egypt, where Scatec's new project is breaking ground is 'in the magic solar belt,' said Elgendy. According to the Global Solar Atlas, Egypt has the fourth-highest solar PV (photovoltaic) potential of any country. Historically, solar energy has been hampered by its intermittency — solar panels only work during the day and large-scale battery storage has been too expensive. However, falling battery prices, combined with the lower operational and installation costs of solar power means that projects that combine solar generation with battery storage, like Obelisk, could overcome this problem. Because of its size and prime location, Obelisk, Elgendy said, 'can demonstrate value for the rest of the region, for the rest of the world, that 'solar plus batteries' can take away this primary weakness.' The cost of battery storage projects has dropped by 89% between 2010 and 2023, driven by growing production capacity, especially in China. This drop, Elgendy said, means that by 2027 solar plus battery plants will be 'the cheapest form of (any kind of electricity) generation.' A report by the Global Solar Council said that the availability of energy storage is a 'major driver for increased solar installations globally.' However, whilst global battery storage capacity hit 363 gigawatt hours (GWh) in 2024, Africa only has 1.6 GWh. Whilst battery prices have dropped and solar is cheap to operate, these plants still need large investments to build, and the money can be hard to find, Elgendy said, adding that the 'risk premium' of investing in the developing world means that these projects are more expensive to build in Africa. The continent attracted only 3% of global energy investments in 2024. Obelisk will receive $479.1 million in funding from the European Bank for Reconstruction and Development, the African Development Bank, and British International Investment. The first 561 MW of solar power and the full battery capacity are due to be online in the first half of 2026, and reach the full 1.1 gigawatt capacity by the end of the year.
Zawya
09-07-2025
- Business
- Zawya
Egypt: Egyptalum, Scatec's arm to build $650mln solar plant for Nagaa Hammadi Complex
Arab Finance: Egypt Aluminum Company (Egyptalum) has signed an agreement with a project company affiliated with Norway's Scatec to establish a 1,000-megawatt solar power plant dedicated to supplying the Nagaa Hammadi aluminum complex with clean energy, as per a statement. The project will be carried out over 24 months with a total investment estimated at $650 million. The agreement was signed in the presence of Minister of Public Business Sector Mohamed Shimi and Norwegian Ambassador to Cairo Hilde Klemetsdal. The solar plant will be built in two consecutive phases, each with a 500-megawatt capacity, along with storage batteries totaling up to 200 megawatts. The project will be fully financed and operated by Scatec under a power purchase agreement (PPA), providing a substantial portion of Egypt Aluminum's energy needs. Shimi said the project marks a milestone for Egypt's aluminum industry and aligns with the government's broader strategy to transition to renewable energy. The minister also described the partnership as a successful model for public-private cooperation with international investors and reaffirmed the ministry's support for such ventures. For her part, Klemetsdal welcomed the agreement as a testament to the strong and growing relationship between Egypt and Norway. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
09-07-2025
- Business
- Zawya
Egypt's electricity, public enterprises ministers discuss expanding renewables in energy-intensive industries
Egypt - Minister of Electricity and Renewable Energy Mahmoud Esmat held talks with Minister of Public Enterprises Sector Mohamed El-Shimy to enhance cooperation on integrating renewable energy and implementing energy efficiency standards across Egypt's power-intensive industries. The meeting comes within the framework of Egypt's updated national energy strategy and the Ministry of Electricity's action plan, which aims to promote clean energy development, reduce reliance on conventional fuels, cut carbon emissions, and strengthen energy security—all while maximising the economic and environmental benefits of renewables. The ministers also reviewed progress on efforts to register and optimise the management of state-owned assets in line with the protocol signed between the Egyptian Electricity Holding Company and the National Asset Management and Investment Company, operating under the Ministry of Public Enterprises. A key item on the agenda was the planned solar power project to supply electricity to the aluminum complex in Nagaa Hammadi, which falls under the jurisdiction of the Ministry of Public Enterprises. The project is part of a broader push to decarbonise industrial operations. Discussions also covered the application of energy efficiency standards in several energy-intensive factories, expanding the local production of electrical equipment, and improving product quality. These measures are intended to advance Egypt's sustainable development goals, enhance industrial performance, and deepen collaboration between the two ministries in the renewable energy sector. Both ministers stressed the need to accelerate the adoption of clean energy solutions to improve operational efficiency in factories and raise energy performance. This effort supports Egypt's goal of raising the share of renewables in its electricity mix to 42% by 2030 and 65% by 2040. The meeting also addressed broader aspects of Egypt's energy transition strategy, including diversifying energy sources and optimising existing infrastructure to meet the demands of industrial growth while ensuring energy efficiency. Minister Esmat affirmed that expanding renewable energy use and implementing energy efficiency measures across all sectors remains a top priority in the ministry's current agenda. He underscored the crucial role of the private sector in executing the energy transition, particularly through bilateral agreements between private entities (Private-to-Private projects) aimed at scaling up clean energy deployment. Esmat further highlighted ongoing national efforts to localise modern technologies, including the domestic manufacture of electrical equipment and energy storage batteries. He pointed to several successful models that have already demonstrated tangible improvements in industrial energy efficiency and consumption reduction. Minister El-Shimy reiterated that improving energy efficiency is a strategic priority for the Ministry of Public Enterprises—not just as an environmental or economic imperative, but as a vital step toward enhancing the production capacity and global competitiveness of state-affiliated companies. He outlined the ministry's integrated plan to reduce operational costs and limit dependence on conventional energy by integrating renewable systems and modern technologies across affiliated factories. This aligns with Egypt's broader push toward a green economy, environmental sustainability, and improved resource management. El-Shimy also stressed the ministry's commitment to fostering strong partnerships with the private sector in renewable energy, attracting fresh investment to accelerate industrial decarbonisation and maximise the efficient use of national resources. © 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (
Zawya
17-06-2025
- Business
- Zawya
African Development Bank readies $476mln loan for Egypt solar plant
The African Development Bank has teamed up with European Bank for Development and Reconstruction (EBRD), and the British International Investment (BII), the UK's development finance institution and impact investor, to provide $479.1 million in funding to Obelisk Solar Power SAE, a special purpose vehicle incorporated in Egypt, and owned by Scatec ASA. This financial facility will be used for supporting the development of a 1GW solar photovoltaic power plant integrated with a 200 MWh Battery Energy Storage System (BESS) in the Nagaa Hammadi region of Egypt. The African Development Bank Group's financing package of $184.1 million includes $125.5 million in commercial loans, as well as concessional funding from Bank Group-managed Special Funds the Sustainable Energy Fund for Africa (SEFA) worth $20 million, and $18.6 million from the Canada-African Development Bank Climate Fund, a partnership of the African Development Bank and the Government of Canada. A further $20 million will be channelled from the Climate Investment Funds' Clean Technology Fund through the African Development Bank. The Bank's Board of Directors approved the funding package on June 11, 2025. As per the deal, EBRD will be providing a financing package of up to $173.5 million, of which $101.9 million will benefit from a European Fund for Sustainable Development (EFSD+) first loss cover guarantee for the first 18 years, in addition to a $6.5 million grant to be provided by the EBRD Shareholder Special Fund. BII financing includes a $100 million concessional loan and a $15 million returnable grant that helps lower the overall cost of the BESS part of the project, making it more financially viable and affordable, while attracting private sector participation and creating models for future investments. BII's financing is subject to drawn down conditions. The project's blended financing of $475.6 million corresponds to approximately 80 per cent of the total estimated capital expenditure of $590 million. According to AfDB, the integrated power plant will be developed by Scatec, a leading renewable energy solutions provider, and built in two phases. The first phase, with 561 MW of solar and 100 MW/200 MWh of battery storage, aims to begin operations in the first half of 2026. The second phase of 564 MW solar aims to start operations in the second half of 2026. The energy will be sold under a USD-denominated 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee. Upon completion, it will be the first integrated solar photovoltaic and battery storage project of this scale in Egypt, representing a significant milestone in the country's energy transition. Egypt aims to reach 42 per cent of renewables in its power mix by 2030. The solar power plant is estimated to generate approximately 3,000GWh per year of additional renewable power, which will enhance grid stability and manage peak demand. It will also reduce carbon dioxide emissions by up to 1.4 million metric tons annually. The facility will support the diversification of Egypt's energy mix and will increase the share of renewable energy contributing to the reduction of greenhouse gas emissions and supporting the country's decarbonisation goals. Egypt's Minister of Planning, Economic Development and International Cooperation, Dr Rania A. Al-Mashat said: "The Obelisk Solar Power project represents a landmark in Egypt's clean energy transition, not only as the first integrated solar and battery storage facility, but also as a model for innovative financing through effective multilateral partnerships." "It reflects our continued efforts to scale renewable energy, enhance grid resilience, and drive forward the implementation of Egypt's Nexus of Water, Food and Energy (NWFE) Country Platform, thus advancing our climate ambitions and creating new opportunities for private sector engagement and sustainable development," she added.
Zawya
16-06-2025
- Business
- Zawya
African Development Bank, British International Investment and European Bank of Reconstruction and Development support pioneering solar and battery storage project in Egypt with $476 million loan
Egypt's first integrated solar and battery storage plant will deliver dispatchable clean energy, enhance grid stability, and manage peak demand. It is expected to generate approximately 3,000 GWh of clean energy and avoid up to 1.4 million tons of emissions annually, supporting Egypt's decarbonisation goals. The African Development Bank ( European Bank for Development and Reconstruction (EBRD), and the British International Investment (BII), the UK's development finance institution and impact investor, are providing $479.1 million to Obelisk Solar Power SAE, a special purpose vehicle incorporated in Egypt, and owned by Scatec ASA ( This financing will support the development of a 1 GW solar photovoltaic (PV) power plant integrated with a 200 MWh Battery Energy Storage System (BESS) in the country's Nagaa Hammadi region. The African Development Bank Group's financing package of $184.1 million includes $125.5 million in commercial loans, as well as concessional funding from Bank Group-managed Special Funds the Sustainable Energy Fund for Africa (SEFA) worth $20 million, and $18.6 million from the Canada-African Development Bank Climate Fund, a partnership of the African Development Bank and the Government of Canada. A further $20 million will be channelled from the Climate Investment Funds' Clean Technology Fund through the African Development Bank. The Bank's Board of Directors approved the funding package on 11 June 2025 ( EBRD will be providing a financing package of up to $173.5 million, of which US$101.9 million will benefit from a European Fund for Sustainable Development (EFSD+) first loss cover guarantee for the first 18 years, in addition to a $6.5 million grant to be provided by the EBRD Shareholder Special Fund. BII financing includes a US$100 million concessional loan and a US$15 million returnable grant that helps lower the overall cost of the BESS part of the project, making it more financially viable and affordable, while attracting private sector participation and creating models for future investments. BII's financing is subject to drawn down conditions. The project's blended financing of $475.6 million corresponds to approximately 80 per cent of the total estimated capital expenditure of $590 million. The integrated power plant will be developed by Scatec, a leading renewable energy solutions provider, and built in two phases. The first phase, with 561 MW of solar and 100 MW/200 MWh of battery storage, aims to begin operations in the first half of 2026. The second phase of 564 MW solar aims to start operations in the second half of 2026. The energy will be sold under a USD-denominated 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee. Upon completion, it will be the first integrated solar photovoltaic and battery storage project of this scale in Egypt, representing a significant milestone in the country's energy transition. Egypt aims to reach 42 per cent of renewables in its power mix by 2030. The solar power plant is estimated to generate approximately 3,000GWh per year of additional renewable power, which will enhance grid stability and manage peak demand. It will also reduce carbon dioxide emissions by up to 1.4 million metric tons annually. The facility will support the diversification of Egypt's energy mix and will increase the share of renewable energy contributing to the reduction of greenhouse gas emissions and supporting the country's decarbonisation goals. Egypt's Minister of Planning, Economic Development and International Cooperation, Dr. Rania A. Al-Mashat: 'The Obelisk Solar Power project represents a landmark in Egypt's clean energy transition, not only as the first integrated solar and battery storage facility, but also as a model for innovative financing through effective multilateral partnerships. It reflects our continued efforts to scale renewable energy, enhance grid resilience, and drive forward the implementation of Egypt's Nexus of Water, Food and Energy (NWFE) Country Platform, thus advancing our climate ambitions and creating new opportunities for private sector engagement and sustainable development.' Wale Shonibare, The African Development Bank's Director of Energy Financial Solutions, Policy, and Regulations noted: "This project exemplifies the scale of renewable energy potential across Africa and demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development. It has a high demonstration and replication potential for similar initiatives across the continent.' Iain Macaulay, Director and Head of Project Finance (Africa&Pakistan), BII said: "This agreement underscores BII's commitment to innovative and sustainable energy solutions. The integration of battery storage with solar PV is a game-changer for Egypt's energy sector, providing reliable and dispatchable renewable energy and reducing reliance on fossil fuels. This project not only meets Egypt's current energy needs but also sets a precedent for future dispatchable hybrid renewable energy projects in the region." Boyd Carpenter, EBRD Managing Director for sustainable Infrastructure, said: 'We're delighted to work with our longstanding partners SCATEC, African Development Bank and BII to support this transformative project, which takes Egypt's green energy transition to another level by harnessing the power of the sun not just during the day but also at night, thanks to the combination of solar and battery storage. It addresses the growing demand for electricity and reduces the need to import expensive fossil fuels. The project contributes towards the goals of the Egypt's flagship Nexus on Water, Food, and Energy which was launched at COP27 in Sharm El Sheikh, and for which EBRD is Egypt's lead partner on the energy pillar." Stefano Sannino, Director-General of the Directorate-General for the Middle East, North Africa and Gulf of the European Commission said: 'Today, the European Union (EU) launches the EU-Egypt Investment Guarantee for Development Mechanism, a strategic platform designed to fast-track a significant pipeline of investment projects to deliver large-scale financing solutions in Egypt. This is a major milestone in the implementation of the EU-Egypt Strategic Partnership. This particular project is a concrete example of a fruitful collaboration between the EU and the EBRD for supporting green transition in the country, through a large-scale investment. The EU guarantee allows the EBRD to provide a loan alongside other financiers to finance an innovative integrated solution which can attract private investors.' Terje Pilskog, CEO of Scatec, the project's operation and maintenance contractor, said: 'This project marks a major milestone for Scatec. It proves our ability to deliver large-scale hybrid projects. We are proud to partner with leading development finance institutions to support Egypt's clean energy ambitions, and we look forward to delivering this important project together with our partners.' Distributed by APO Group on behalf of African Development Bank Group (AfDB). For media inquiries please contact: The African Development Bank Olufemi Terry media@ British International Investment Paschorina Mortty press@ The European Bank for Development and Reconstruction Nibal Zgheib zgheibn@ Scatec Meera Bhatia Follow British International Investment on: LinkedIn: X: Follow The European Bank for Development and Reconstruction on: Web: Facebook: LinkedIn: Instagram: Twitter: YouTube: About British International Investment: British International Investment is the UK's development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia and the Caribbean, BII invests to create productive, sustainable and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII's total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women's economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion. For more information, visit: | watch here ( About The European Bank for Development and Reconstruction: The EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 36 economies across three continents. The Bank is owned by 75 countries as well as the EU and the EIB. EBRD investments are aimed at making the economies in its regions competitive ( inclusive ( well-governed ( green ( resilient and integrated (
