Scatec, a leading renewable energy solutions provider, has signed a Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) to develop a solar power plant with a total capacity of 1.95 gigawatts (GW) and a Battery Energy Storage System (BESS) to store the generated power with a capacity of  3.9 gigawatt-hours (GWh).

Under the agreement, Scatec will develop one integrated solar and BESS hybrid system designed to provide continuous, around-the-clock renewable baseload power. In addition, the company will develop two standalone BESS projects to support grid stability and essential network services.

The combined capacity will represent the largest solar and BESS installation in Africa and the largest investment in Scatec’s history, according to the company’s release on January 10. The plant is expected to generate approximately 6,000 GWh of renewable energy annually.

“Signing this groundbreaking PPA further cements Scatec’s leading position and commitment to delivering reliable, renewable energy at a large scale in Africa,” said Terje Pilskog, CEO of Scatec. “By integrating advanced solar and battery technologies, we are providing Egypt with sustainable, around-the-clock power and grid-stabilizing services, supporting both the country’s energy transition and the region’s long-term economic development.”

Under the PPA,  Scatec will receive USD-denominated payments for 25 years based on the electricity generated by the hybrid system.

The company will provide Engineering, Procurement and Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services for the projects. It will act as the lead developer and plans to invite additional equity partners.