A key milestone has been achieved with the signing of a 25-year power purchase agreement (PPA) between Scatec ASA and Egypt Aluminium. The agreement, backed by a sovereign guarantee, will facilitate the implementation of the Scatec/EETC – 1.1GW Solar Power Power Plant – Naga Hammadi project. The next steps involve securing land, finalizing grid connection arrangements, and completing financial structuring. Scatec expects to reach a financial close and begin construction within the next 12 months.
The project will be executed in two phases, each delivering 500 megawatts per hour (MWh) of renewable energy capacity. The total investment is estimated at USD 650 million, with approximately 80% funded through non-recourse project debt. Scatec will retain full ownership and oversee the engineering, procurement, and construction (EPC) process, accounting for around 90% of the total capital expenditure. The company will also be responsible for asset management, operations, and maintenance services.
This initiative aligns with Egypt’s vision for energy diversification and sustainability by expanding the use of renewable resources. By leveraging advanced battery storage technology, the project will not only enhance industrial energy efficiency but also contribute to the nation’s long-term goal of reducing carbon emissions. Strengthening the renewable energy sector will support economic growth, attract further investment, and reinforce Egypt’s position as a leader in clean energy development.
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