Cairo, January 14, 2026
The Energy Valley: A Gigawatt-Scale Powerhouse
The Energy Valley project will be established in Minya Governorate by Scatec, and will have the ability to produce up to 1.95 GW of solar power through the use of solar photovoltaics, with storage capabilities of up to 3.9 GWh. When it's up and running, Energy Valley will give Egyptians and businesses all over the country a steady supply of clean energy. It should make about 6,000 GWh of power yearly, which is enough for millions of homes and businesses nationwide.
This new development will also be distinguished by its storage units, each capable of containing four gigawatt hours of energy, which will be located at three different sites: Minya, Qena, and Alexandria. Having three different sites will significantly improve grid stability and reduce transmission network congestion. The storage units will also allow for the provision of services that are required by the National Electric Transmission Network, such as frequency control. Additionally, the project plans to construct four additional substations and build new lines to supply power to a new large scale industrial zone in the area of Wadi Al-Sareeriyah/minya.
Financing and a 25-Year Commitment
The European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the African Development Bank (AfDB), along with other top international development banks, have initially agreed to fund the project. Also, there will be a 25-year Power Purchase Agreement (PPA) specifying that electricity sales will be paid at a rate tied to the current US dollar value. The PPA will be used to mitigate risks to investors due to currency fluctuations and will allow investors to expect predictable revenues, thus making it possible to develop a financial model that will lead to the financing of other large scale renewable energy projects in the region.
Localizing the Supply Chain: Sungrow's Gigafactory
Parallel to the power plant development, a separate but integral industrial agreement was signed with Sungrow, a global leader in inverters and energy storage. The Chinese company will establish a battery energy storage system (BESS) manufacturing plant in the Sokhna Industrial Zone within the Suez Canal Economic Zone.
This factory covers 50 000 square meters, and it will be the first factory of this type in both the Middle East and Africa to be developed. This factory will have an annual production capacity of 10 GWh, and it will begin operations in April 2027. Part of the factory's output will supply the Energy Valley project and create a local supply chain, while the remainder will supply the domestic and regional markets in Egypt. The goal of this initiative is to develop Egypt as a centre for advanced energy technology manufacturing beyond this single initiative.
Strategic Significance for Egypt and Beyond
As the Prime Minister Madbouly stated at the signing ceremony, "This project strongly enhances the clean energy vision of Egypt." With Egypt's goal of obtaining 42% of its power from renewables by 2030, the "Energy Valley" complex, located within the first sector of the planned 'Energy Valley' is crucial. It aims to provide a comprehensive solution to intermittency by delivering firmer and more flexible renewable energy, thanks to the coupling of enormous solar generation and high energy and power density storage systems. This is, by far, the largest investment for Scatec, and also reinforces its market position as a dominant player in developing sophisticated, large-scale renewables in emerging economies. For Sungrow, the gigafactory constitutes a significant shift from being an equipment supplier to a local manufacturer in a growing market, which drives vertically integrated local production. The project is far more than a national achievement; from an international viewpoint, it is a first of its kind and shows an integrated and practical approach to achieving energy and industrial security, climate goals, and coupled renewables, including solar and storage, with grid systems and local manufacturing. With its abundant solar, the "Energy Valley" is a prototype for the sustainable energy future of Africa.
Editor's Note:
Scatec ASA, a Norwegian company, is a top player in creating, building, owning, and running renewable energy plants in growing markets.
Sungrow, a Chinese business, is a world leader in providing inverters and energy storage. They have systems set up in more than 150 countries.
The Suez Canal Economic Zone (SCZone) in Egypt is a key special economic zone that's great for industrial and logistics investments.
