Scatec Signs 25-Year PPA with Egypt Aluminium for 1.1-GW Solar Project

Scatec has signed a 25-year power purchase agreement (PPA) with Egypt Aluminium for a 1.1-GW solar project, which will be combined with battery storage to support the aluminium manufacturer’s efforts to reduce carbon emissions in its production process. This deal, described as Egypt’s first utility-scale agreement with an industrial off-taker, marks a significant step in the country’s renewable energy landscape.

The project, valued at approximately USD 650 million (EUR 597 million), will move forward with land arrangements, grid connection finalization, and financing efforts. Backed by a sovereign guarantee, this project is expected to achieve financial closure and begin construction within the next year. The solar plant will be supported by a 100-MW/200-MWh battery energy storage system (BESS).

Although Scatec currently holds full ownership of the project, it plans to bring in equity partners in the future. Additionally, Scatec will manage asset operations and provide maintenance services. Egypt Aluminium, the nation’s largest producer of aluminium and industrial electricity consumer, intends to utilize power from this solar project to meet the EU’s Carbon Border Adjustment Mechanism (CBAM) requirements. About 60% of its output is exported to Europe.