Scatec ASA has signed a 25-year USD-denominated corporate Power Purchase Agreement (PPA) with Egypt Aluminium for a 1.1 GW Solar PV and 100 MW/200 MWh BESS project in Egypt.
As Egypt’s largest aluminium producer and industrial electricity consumer, Egypt Aluminium exports around 60% of its production to Europe.
The project will support its efforts to decarbonise production and comply with the EU’s upcoming Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026.
The estimated capital expenditure for the project is approximately $650m, with around 80% funded by non-recourse project debt and the remainder through equity from Scatec and partners.
While Scatec currently owns 100% of the project, it plans to invite additional equity partners. The company will serve as the EPC provider, responsible for about 90% of the total capex, and will also manage asset management (AM) and operations and maintenance (O&M) services.
Scatec aims to finalise land allocation, grid connections, and financing before reaching financial close and beginning construction within the next 12 months. CEO Terje Pilskog stated:
“[This] is a groundbreaking project as it is the first utility-scale PPA in the country with an industrial offtaker. I would like to thank all parties involved for making this happen, especially our partners at Egypt Aluminium.
“Further, our team has shown great persistence and creativity in securing this agreement and bringing new solutions to the market.”
Egypt has become a key player in Africa’s solar industry, with large-scale PV projects contributing to the continent’s growing solar capacity.
The country saw significant solar and storage expansion in 2024, in line with broader trends in Africa’s renewable energy market.
