UAE plans gigawatt-scale solar, battery projects in Egypt

UAE-based companies, in collaboration with Chinese and Egyptian partners, plan to develop gigawatt-scale solar energy and battery storage projects, alongside manufacturing solar equipment and battery technology in Egypt, as part of a broader energy partnership between the two Arab nations.

Several memoranda of understanding (MoU) were signed at Egypt's New Administrative Capital on Wednesday at a ceremony attended by Egypt's prime minister Mostafa Madbouly, UAE industry minister and Masdar chairman Sultan Al Jaber, Egypt's electricity minister Mahmoud Esmat and other officials from both sides.

The agreements focus on strengthening strategic collaborations in vital areas such as industrial development and renewable energy production, including the establishment of a UAE-Egypt industrial zone in East Port Said.

Abu Dhabi-based renewables major Masdar and the Future of Egypt for Sustainable Development Authority (FESDA) have signed two pacts -- for the development of a floating solar PV project of up to 3 GW on Lake Nasser and for a solar energy project of up to 2 GW in the north of Nagaa Hammadi.

Masdar as a leader of a consortium with Infinity Power and Hassan Allam Utilities has also sealed two power purchase agreements (PPAs) with the Egyptian Electricity Transmission Company (EETC). The offtake deals concern 1.2 GW of solar and 720 MWh of battery energy storage capacity, including a 900-MW solar plant in Wahat and a 300-MW solar plant in Benban with co-located batteries at both sites.

In addition, UAE's Global South Utilities and China's JA Solar have signed MoUs for the construction of two factories -- a 2-GW manufacturing site for solar panels and another 2-GW plant for the production of solar cells.

During the signing ceremony, Egypt's deputy prime minister Kamel Al Wazir explained that the Chinese company will study establishing two factories to produce solar cells -- the first with a production capacity of up to 2 GW for export, with a total expected investment of up to USD 138 million (EUR 130.6m), and the second of up to 2 GW to meet local demand, with a total investment of up to USD 75 million.

Apart from that, Global South Utilities and China's Weiheng will explore the construction of a battery energy storage factory with a capacity of up to 1 GW. The required investment is estimated at USD 12 million.