• Egypt signed a 25-year, dollar-denominated power purchase agreement with Scatec covering 1.95 GW of solar capacity and 3.9 GWh of battery storage.

• Authorities inaugurated the first 500 MW phase of the Obelisk solar project, part of a $600 million, 1 GW development backed by European and African financiers.

• Egypt advanced a 100 MW green hydrogen project at Ain Sokhna, with partial production already underway and exports planned to Europe.

Egypt continues to position itself as one of Africa’s most attractive renewable energy markets for private investors. The presence of companies such as Scatec, AMEA Power and Masdar reflects a clear regulatory framework and consistent pro-renewable policies, comparable to those in South Africa.

At the start of 2026, the Arab Republic of Egypt increased announcements related to renewable energy development. Between Sunday, Jan. 11, and Wednesday, Jan. 14, authorities highlighted a strategy based on clear national targets, support from international lenders and strong private-sector involvement, which allows rapid delivery of large-scale projects such as those led by Scatec.

On Jan. 11, the Norwegian company signed a power purchase agreement with the Egyptian Electricity Transmission Company covering 1.95 gigawatts of solar capacity and 3.9 gigawatt-hours of battery storage. The 25-year agreement, denominated in U.S. dollars, covers a hybrid system combining solar generation and storage, alongside two standalone battery projects designed to support grid stability.

The following day, on Jan. 12, Egyptian authorities inaugurated the first phase of the Obelisk solar project in Nagaa Hammadi. This initial 500-megawatt phase, paired with 200 megawatt-hours of batteries, forms part of a 1,000-megawatt project also developed by Scatec. Authorities expect the second phase to enter service in May 2026. European and African institutions finance the project for about $600 million.

Building on this momentum, the Egyptian prime minister reviewed progress on a 100-megawatt green hydrogen project at Ain Sokhna on Jan. 13. Scatec develops the project with Egypt’s sovereign wealth fund, Orascom Construction and Fertiglobe. Authorities said partial production has already begun, while exports will target Europe and other markets.

These announcements support Egypt’s official goal of raising renewable energy to 42% of the power mix by 2030, a level the government now aims to exceed. Authorities rely on contractual and financial frameworks designed to attract international investors, with backing from multilateral lenders.

Beyond Egypt and North Africa, Scatec also develops projects in Southern Africa, particularly in South Africa and Botswana, where renewable policies remain clear. This multi-market presence shows that stable rules and predictable policies, beyond natural resource potential alone, allow African markets to attract credible and long-term investors.

This article was initially published in French by Abdoullah Diop

Adapted in English by Ange Jason Quenum