Scatec signs PPA for Egyptian solar and BESS hybrid facility

Core Insights - Scatec has signed a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for a total capacity of 1.95GW of solar power and 3.9GWh of battery energy storage systems (BESS) in Egypt [1][2] - This agreement marks the largest investment in Scatec's history, emphasizing the company's commitment to renewable energy in Africa [2] - The integrated solar and BESS facility aims to provide continuous renewable baseload power, generating approximately 6,000GWh of renewable energy annually [3] Project Details - Scatec will develop two additional stand-alone BESS projects to enhance grid stability and support services [2] - The company will manage engineering, procurement, construction (EPC), asset management, and operations and maintenance for the projects, leveraging its experience in large-scale hybrid and BESS projects [4] - The PPA is structured as a 25-year, US dollar-denominated, pay-as-produced agreement based on actual electricity output [3] Financial Aspects - Scatec will bring in additional equity partners for the projects, with details on capital expenditure, EPC scope, and financing structure to be disclosed at financial close, expected in the latter half of the year [5] - The establishment of a factory by Sungrow in the Suez Canal Economic Zone for energy storage batteries will support Scatec's project [6] Industry Context - Egypt aims for renewable sources to account for 42% of its electricity generation by 2030, although officials have indicated that achieving this goal may require increased international support [6]