Norwegian renewables developer Scatec has signed a 25-year corporate PPA for a 1.1 GW solar plant with 100 MW/200 MWh of battery energy storage in Egypt.
The agreement, backed by a sovereign guarantee, is with Egypt Aluminum, the country’s largest aluminum producer and industrial electricity consumer, which exports 60% of its output to Europe. The project, with an estimated total capital expenditure of $650 million, will be funded by about 80% non-recourse project debt and the remainder by equity from Scatec and its partners.
Scatec, which will act as the engineering, procurement, and construction (EPC) service provider, asset manager, and operations and maintenance (O&M) service provider, currently owns the entire project but plans to reduce its long-term economic interest by inviting additional equity partners.
Work is underway with relevant authorities to allocate land, finalize grid connection, and secure financing, Scatec said. The company expects to close financing and begin construction within the next 12 months.
Scatec CEO Terje Pilskog said the project is Egypt's first utility-scale PPA with an industrial offtaker.
Pilskog added that the agreement underscores Scatec’s position as a leading renewables company in Egypt. Last September, the company signed a 25-year solar PPA with Egyptian Electricity Transmission Co. for a 1 GW solar array with 100 MW/200 MWh of battery storage, Egypt's first hybrid solar-plus-battery project.
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