CNN
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Egypt’s first large-scale hybrid solar and battery plant began construction with a look at the abundant sunlight to help the country fix it. the Energy crisis.
Located in Nagaa Hammadi, Obelisk combines 1.1 gigawatt solar production with 200 megawatts of battery storage. The $590 million project is built by Scatec, a Norwegian renewable energy company that works primarily in emerging markets.
Scatec already has four other renewable projects in Egypt. The North African country aims to increase its share of renewable production from 13% in 2023 to 42% by 2030.
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About three-quarters of Egypt’s electricity comes from gas. However, as domestic gas production declines in recent years, it has relied on imports, and The rise in gas prices has caused Egypt to fall into a series of blackouts.
SCATEC CEO Terje Pilskog told CNN that renewable projects are becoming increasingly attractive to emerging economies and tend to be the most difficult due to rising fuel prices. “Renewables don’t rely on importing fuels,” he said. “There’s also about predictability.”
60% According to the industrial group Global Solar Council, the world’s best land for solar development is in Africa, but in 2023, only 3% of the continent’s energy came from the sun.. In 2024, 75% of all new solar projects were built in South Africa or Egypt, but 18 African countries Compared to the two in 2024, there is a possibility that they will install a solar project of 100 MW or more in 2025. The continent aims to reach 300 GW solar capacity by 2030.
Egypt is looking for new domestic gas resources, but set ambitious renewable energy targets and held the COP27 Climate Conference in 2022. But the driving force behind these new renewable projects is economic, not the environment, and says Karem Elgendy, executive director, Energy and candidate Karem Elgendy, Middle East and North African Energy and Candidate.
Egypt is struggling to turn on the lights as it relies on gas and production is declining from its flagship Zohr gas fields.
Egypt issued bids to import around 2 million tonnes of fuel oil in May and June due to the gas imports being too high. Summer brings high demand as air conditioning units are turned on to combat intense heat. The average high could reach 42 Celsius (108 F) in the South. Prime Minister Mostafa Madbouly recently urged people to curb their energy use to avoid blackouts.
Egypt’s summer heat will increase electricity demand, but it could also provide a solution. The south of Egypt, where Scatech’s new project is broken, is a “magic solar belt,” Ergendi said. According to Global Solar Atlas, Egypt has the potential to be the fourth highest solar power generation in any country.
Historically, solar energy has been intermittently hampered. Solar panels only work during the day, and large battery storage is too high. However, the decline in battery prices, coupled with lower solar power operational and installation costs, means projects that combine solar generation with battery storage like obelisks can overcome this problem.
Due to its size and its main location, “in other parts of the world, “solar and batteries” can take away this major weakness,” Ergendi said.
Battery Storage Project Cost This declined by 89% between 2010 and 2023, particularly due to increased production capacity in China. This drop means that by 2027 solar and battery plants will “become the cheapest form of (any kind of electricity) generation.” According to a report from the Global Solar Council, the availability of energy storage is “a major driver of the increase in solar power generation around the world.” However, global battery storage capacity reached 363 gigawatt hours (GWH) in 2024, while Africa only has 1.6 gWh.
Battery prices are falling and solar is cheaper to operate, but these plants still require large investment, And it can be difficult to find money, Ergendi said, adding that the “risk premium” of investment in developing countries means these projects are more expensive to build in Africa. The continent attracted just 3% of global energy investment in 2024.
Obelisk receives $479.1 million in funding from the European Bank for Reconstruction and Development, the African Development Bank and the European Bank for International Investment in the UK. The solar powered first 561 MW and full battery capacity is expected to be online in the first half of 2026, reaching full 1.1 gigawatt capacity by the end of the year.
