Wednesday, 27 May 2026
Egypt signs $1.8B clean energy agreement with Scatec
In a significant step towards advancing renewable energy in the Middle East and Africa, Egypt’s Prime Minister Dr. Mostafa Madbouly has overseen the signing of preliminary financing agreements for the new “Energy Valley” sustainable energy mega-project. Developed by leading Norwegian company Scatec, the investment is valued at $1.8 billion.
The agreements were signed during the inauguration ceremony for the first phase of the “Obelisk” solar power project in Egypt’s Qena Governorate. The “Energy Valley” project will see the construction of a 1.7 GW solar power plant in Minya Governorate, with advanced battery storage systems totaling 4 GWh spread across Minya, Qena, and Alexandria. This setup aims to ensure consistent, reliable clean electricity for Egypt’s national grid, help stabilize energy supply, and reduce regional bottlenecks.
Prime Minister Madbouly celebrated the occasion, stating: “Signing these vital financing agreements within one of Egypt’s largest solar energy projects is a testament to the state’s dedicated efforts in expanding renewable energy, lowering carbon emissions, and diversifying energy sources. It also marks our commitment to developing local industries through robust partnerships with the private sector and development partners.”
Major international financing is coming from the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the African Development Bank (AfDB). The high-profile signing was attended by senior government ministers and ambassadors, including the EU’s Ambassador to Egypt, the Ambassador of Norway, and the CEO of Scatec, Mr. Terje Pilskog.
Complementing the project, Chinese company Sungrow will construct a battery and energy storage systems plant in the Suez Canal Economic Zone to support both the Energy Valley project and broader domestic and regional markets. A land-use agreement for the facility was finalized on January 11, 2026.
Energy Valley is set to become one of the world’s largest integrated clean energy projects and the first in the region to deliver 24/7 stable, competitively-priced renewable electricity. In addition to solar generation and large-scale battery storage, the project involves new substations and transmission lines, while supplying clean energy to Minya’s industrial zones.
By facilitating ambitious renewable energy projects, Egypt further strengthens its position as a regional hub for clean power, in line with global efforts to combat climate change and promote sustainable development.