Egypt to pay 50% of electricity costs from Scatec’s 1,000-MW hybrid solar project in EGP
Updated 11/27/2024 7:41:00 AM
Arab Finance: Egypt has reached an agreement with Norway's Scatec to pay 50% of the cost of electricity from its upcoming 1,000-megawatt hybrid solar project in Egyptian pounds, Asharq Business reported, citing sources familiar with the deal.
Under the terms, the local currency portion will remain at 50% for the first three years after the project’s operational launch.
It will then change to 25% in Egyptian pounds and 75% in dollars after the third year of the project for 25 years, which represents the period of the power purchase agreement and the project’s life span, the sources added.
The project, expected to become operational in early 2026, will be Egypt’s first hybrid solar plant of this scale.
Scatec is currently finalizing land agreements and securing financing from development institutions, aiming to begin construction in the first half (H1) of 2025.
Officials confirmed that the agreed purchase price for electricity is around 2.3 cents per kilowatt-hour.
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