Egypt has formally stepped into the solar manufacturing era with the signing of over $1.8 billion in renewable energy agreements, signalling a strategic push to produce solar components and battery storage systems domestically.
The deals, overseen by Prime Minister Mostafa Madbouly on Sunday, January 11, 2026, include two major projects: the Energy Valley solar power plant in Minya governorate and a battery manufacturing facility in the Suez Canal Economic Zone (SCZONE).
The Energy Valley project, developed by Norway’s Scatec, will deliver 1.7 GW AC from solar photovoltaic energy supported by a 4 GWh battery energy storage system. The storage capacity will be distributed across Minya, Qena, and Alexandria, aiming to enhance grid stability, reduce geographic bottlenecks, and provide 24-hour clean electricity at competitive tariffs.
The initiative also involves constructing new transformer stations and dedicated transmission lines feeding the Wadi Al-Saririya industrial zone.
In parallel, China’s Sungrow will establish the region’s first Battery Energy Storage Systems (BESS) manufacturing facility in Sokhna, within the TEDA-Egypt industrial developer zone. Spanning 50,000 square meters, the factory is expected to produce up to 10 GWh annually, supply the Energy Valley project, create roughly 150 direct jobs, and drive the localization of renewable energy technology in Egypt. Production is scheduled to begin in April 2027.
Madbouly described the localization of renewable energy manufacturing as “a fundamental pillar for enhancing energy security and achieving a green transition.” By producing components locally, Egypt can meet energy demands using domestic currency, reduce reliance on imports, and retain capital within the national economy.
The prime minister noted that new factories in the SCZONE have already achieved a local component rate exceeding 50%, illustrating progress toward a domestic solar supply chain.
The agreements were signed in the presence of key government officials, including Deputy Prime Minister for Industrial Development Kamel al-Wazir, Minister of Electricity Mahmoud Essmat, SCZONE Chairperson Walid Gamal El-Din, as well as international partners such as Scatec CEO Terje Pilskog and Sungrow representatives.
Land usufruct contracts and power purchase agreements (PPAs) were finalized to underpin the financial and operational structures of both projects.
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The SCZONE itself is expanding rapidly, with 190 factories operational and another 150 under construction. Many of these facilities are entering industries previously absent in Egypt, with 70% of output targeted for export and 30% serving domestic demand.
Madbouly emphasised that private sector investment drives over 65% of the total, reflecting growing confidence from international companies in the Egyptian market.
These projects align with Egypt’s broader renewable energy and industrial policy. By developing a local manufacturing base for solar modules and batteries, the country strengthens its energy security while supporting economic growth projections of 7.5%–8% annually through 2030.
The government has also committed to further infrastructure investments, estimating an additional EGP 40 billion will be needed to expand industrial zones and accommodate global manufacturing demand.
For investors, developers, and policymakers, the Energy Valley and SCZONE battery factory represent Egypt’s ability to move from import dependency toward a localized clean energy ecosystem.
The combination of utility-scale solar, storage capacity, and domestic manufacturing creates a replicable model for integrating industrial policy with renewable energy deployment in the region.
As the Middle East and Africa look to scale renewable energy rapidly, Egypt’s $1.8 billion investment package positions the country at the forefront of regional solar manufacturing, creating jobs, stabilizing the grid, and producing technology for both domestic use and export. For a nation seeking energy independence and industrial diversification, the era of locally produced solar power has officially begun.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
