Egypt signs preliminary financing agreements for $1.8bn Energy Valley project
Prime Minister Mostafa Madbouly witnessed, on Monday, the signing of preliminary financing agreements for the Energy Valley sustainable energy project, with investments approaching $1.8bn, on the sidelines of the inauguration of the first phase of the Obelisk Solar Power Project in Nagaa Hammadi, Qena.
Madbouly said the signing of the agreements, held within one of Egypt’s largest solar energy projects, reflects the positive outcomes of the state’s efforts to expand renewable energy use, reduce carbon emissions, diversify energy sources, and localise clean energy industries through effective partnerships with the private sector and international development institutions.
The Energy Valley project is being developed by Norwegian renewable energy company Scatec and is one of the largest integrated clean energy projects globally. It is also the first in the region designed to provide stable, clean electricity around the clock at a competitive tariff.
The project includes the construction of a 1.7-gigawatt (AC) photovoltaic solar power plant, to be fully implemented in Minya Governorate. It will be supported by battery energy storage systems with a total capacity of 4 gigawatt-hours, geographically distributed across Minya, Qena, and Alexandria. This configuration is designed to enhance grid reliability and stability while easing geographic transmission bottlenecks.
In addition, the project encompasses the establishment of four new transformer stations and dedicated power transmission lines, as well as the provision of clean and stable electricity to support the new industrial zone in Wadi El-Sirriya, Minya.
The preliminary financing agreements were signed between Energy Valley, owned by Scatec, and a consortium of international financial institutions, including the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the African Development Bank (AfDB). The agreements were signed by Mohamed Amer, Chairperson of Energy Valley and Vice President of Scatec; Andrew McDowell, Managing Director at the EIB; Harry Boyd Carpenter, Managing Director for Infrastructure at the EBRD; and Abderrahman Diaw, Regional Director at the AfDB.
On the industrial side, Chinese company Sungrow is executing an independent project within the Suez Canal Economic Zone, where it is establishing a factory to manufacture batteries and energy storage systems as part of its regional expansion strategy. The company signed the land lease agreement for the factory on Tuesday and plans to supply part of its production to the Energy Valley project, as well as to domestic and regional markets.
The signing ceremony was attended by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel Al-Wazir; Minister of Planning, Economic Development and International Cooperation Rania El-Mashat; Minister of Electricity and Renewable Energy Mahmoud Esmat; European Union Ambassador to Egypt and the Arab League Angelina Eichhorst; Norwegian Ambassador to Egypt Eric Høysheim; and Scatec CEO Terje Pilskog.
Separately, El-Mashat said international financial institutions have provided approximately $625m in concessional financing for the first phase of the Obelisk Solar Power Project, which was inaugurated on the same day. The phase includes 500 megawatts of solar capacity and 200 megawatt-hours of battery energy storage systems and is part of a total planned capacity of 1,000 megawatts being developed by Scatec.
The financing package includes $150m from the EIB, $160m from the AfDB, more than $100m from the EBRD, $100m from the US International Development Finance Corporation, and $115m from British International Investment.
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