The solar PV and BESS project is estimated to cost $650m.
Egypt Aluminium is the country’s largest aluminium producer and industrial electricity consumer, exporting 60% of its production to Europe.
The solar PV and BESS project is expected to play a key role in Egypt Aluminium’s efforts to decarbonise its aluminium production and comply with the EU’s Carbon Border Adjustment Mechanism regulations, set to take effect in 2026.
The next steps for the project involve collaborating with the relevant authorities to allocate land, finalise grid connections and secure financing. Scatec aims to achieve financial close and begin construction by March 2026.
The solar PV and BESS project is estimated to cost $650m, with 80% financed through non-recourse debt and the rest via equity from Scatec and its partners.
Scatec fully owns the project but plans to reduce its long-term economic stake by inviting additional equity partners.
It will act as the primary engineering, procurement and construction service provider, handling 90% of the total capital expenditure, and will also manage asset operations and provide operations and maintenance services.
Scatec CEO Terje Pilskog said: “This is another testament to Scatec’s position as one of the leading renewables companies in Egypt. It is a groundbreaking project as it is the first utility-scale PPA in the country with an industrial off-taker.
“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.”
In January 2025, Scatec signed a 15-year contract-for-difference agreement with Romanian electricity market operator Opcom.
