Egypt Gets $1.6 Billion in Renewable Energy Projects with Norway’s Scatec
Egypt has signed two major agreements with Norway’s Scatec ASA to build large solar and wind energy projects worth $1.6 billion. This is a big step forward for Egypt’s plans to expand its use of renewable energy, according to statements from the Egyptian government and the company on Sunday.
Solar Energy Project in Egypt
Egypt’s government has confirmed the final funding for a major solar energy project with Norwegian company Scatec. The project will produce 1 gigawatt of solar power and has attracted $600 million in investment. This means construction can now begin.
Most of the project’s funding—about $479 million—is coming from international banks, including the European Bank for Reconstruction and Development, the African Development Bank, and British International Investment. This amount will cover around 80% of the total cost, according to Scatec.
The project will be built in two parts.
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Phase 1 includes 561 megawatts (MW) of solar power and a battery system for energy storage. This part is expected to be ready in the first half of 2026.
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Phase 2 will add another 564 MW and should be completed in the second half of 2026.
Electricity from the project will be sold under a 25-year agreement with Egypt’s national power company. The contract is priced in U.S. dollars and backed by the government.
Scatec has also arranged $120 million in short-term loans so it doesn’t need to put in all its money upfront. The company is talking to potential partners and expects to finalize deals soon.
Scatec will handle all parts of the project, including construction, management, and maintenance. Construction alone will take up about 70% of the total budget.
Wind Energy Project in the Gulf of Suez
Scatec has also signed a long-term deal for a large wind energy project in the Gulf of Suez. This wind farm will generate 900 MW of power and is expected to cost $1 billion. The agreement is also for 25 years and priced in U.S. dollars.
The wind farm will be built in Ras Shukeir, a location with excellent wind conditions. Wind studies and site tests will be finished by mid-2026. After that, the company will secure final funding and begin building.
Egypt’s Renewable Energy Goals
Egypt wants 42% of its electricity to come from renewable sources by 2030. Right now, only 11.5% of the country’s power comes from solar, wind, and hydro energy. The rest still comes mainly from natural gas.
Published: 17th June 2025
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