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It was a big day for UAE-Egypt renewables investments as players from the two countries inked numerous investments for projects across the country.
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#1- Masdar inked two MoUs for solar plants:
- A floating solar plant on Lake Nasser could be built under an MoU with state agency Future of Egypt agricultural expansion project. It’s unclear how big the project will be, with Emirati state news agency Wam putting the project’s capacity at 3 GW and the cabinet statement putting the capacity at 5 GW, split between a 2 GW first stage and 3 GW second stage.
- The two sides could also establish a solar power plant in Nag Hammadi. Wam pegs capacity at 2 GW, while cabinet pegs it at 2.8 GW.
#2- A renewables-focused industrial zone in East Port Said may also be in the works, courtesy of AD Ports, who inked an MoU for the project with the SCZone, according to a separate statement. The Abu Dhabi sovereign wealth fund ADQ-owned company will develop, operate, and manage the 20 sq km zone in East Port Said. The possibility of linking the site with nearby docks and logistics areas is also under study.
What we know so far: The project will start with four factories, two of which will produce solar panels and other bits of solar tech, Egyptian Prime Minister Moustafa Madbouly said in his weekly presser. The project will also have facilities producing batteries to store solar power by next summer, he added. The factories will have a capacity of 4 GW of solar panels and 2 GW of battery storage.
This isn’t the first time we heard about the project: Recent meetings in August between government officials and Emirati government and business figures covered a proposal to set up an Emirati industrial zone in East Port Said, which the government said it was considering making a freezone or special economic zone exempt from customs duties.
#3- A USD 12 mn battery storage factory is also in the works, after an MoU was inked between the Industry Ministry, the UAE’s Global South Utilities, and China’s Weiheng, according to another statement. The facility will have a capacity of 1 GW.
#4- Global South Utilities also inked an MoU with JA Solar for two factories to produce solar cells and panels, according to a separate statement. One of the factories will manufacture solar cells with a production capacity of 2 GW at an investment cost of USD 138 mn, alongside another to produce solar panels with the same production capacity at a cost of USD 75 mn.
IN OTHER EGYPT RENEWABLES UPDATES-
Egypt greenlights two solar projects: The Egyptian Cabinet has approved two power purchase agreements (PPAs) signed between the Egyptian Electricity Transmission Company and a consortium made up of the UAE’s Masdar, Hassan Allam Utilities, and Infinity Power to develop two large-scale solar power plants in Egypt, according to a statement. The projects — located at the Benban and Al-Wahat sites — will have a combined capacity of 1.2 GW and include 720 MWh of battery storage. No financial details were included in the announcement.
About the projects: The Benban solar farm is set to generate 300 MW of solar power, with 60 MWh of energy storage, while the Al-Wahat project will generate 900 MW of solar power capacity with 660 MWh of battery energy storage. Both projects are expected to begin trial operations in 2025.
REMEMBER- A government source said in September that the consortium will build solar power plants in Upper Egypt with a combined capacity of 1 GW at a cost of USD 900 mn after the Egyptian government greenlit the move. The projects were previously reported to include a 240 MWh of battery storage capacity.
No stranger to the Egyptian market: The three companies are partners in building a USD 11 bn 10 GW wind farm in Sohag, which is set to be one of the largest wind farms globally and the largest in Africa. Masdar is also working with Infinity and the EETC to build a 200 MW wind farm in Ras Ghareb.
