Scatec Clinches Egypt PPA for Record Solar-Storage

• Scatec inks 25-year USD PPA for Africa’s biggest solar+storage in Egypt—1.95 GW solar, 3.9 GWh batteries—round-the-clock, grid-forming power with non-recourse financing and H2 close.

Norway’s Scatec signed a 25-year, USD‑denominated pay‑as‑produced PPA with the Egyptian Electricity Transmission Co. for Africa’s largest solar‑plus‑storage build: 1.95 GW of solar paired with 3.9 GWh of batteries across a hybrid park and two standalone BESS, expected to deliver about 6,000 GWh a year and grid‑stabilizing services.

The hard‑currency, long‑dated contract underpins non‑recourse financing. Scatec will lead EPC, asset management and O&M, bring in equity partners, and targets financial close in H2. Four‑hour‑class batteries and grid‑forming inverters enable round‑the‑clock supply and frequency response. The deal advances Scatec’s Egypt pipeline, including Obelisk and the 1‑GW Dandara project slated for 2026.

How do USD PPA and four-hour BESS enable bankable, 24/7 supply in Egypt?

• USD-denominated revenues neutralize local-currency devaluation risk, enabling long-tenor, non-recourse debt at lower margins and unlocking gigawatt-scale capex.
  
• Hard-currency PPAs attract DFIs/ECAs and commercial lenders, with offshore collection accounts, debt-service reserves, and hedges addressing convertibility/transfer constraints.
  
• Predictable cash flows via indexation, change‑in‑law protection, curtailment/deemed‑energy compensation, termination payment mechanics, and lender step‑in rights drive bankability.
  
• Clear storage remuneration (availability/capacity plus dispatched energy and contracted ancillary services) under the PPA framework de-risks BESS returns.
  
• Four‑hour batteries shift midday solar to evening and morning peaks, firming output into contracted blocks that approximate round‑the‑clock supply.
  
• Multi-site coordination and fast response from BESS smooth intra-hour variability, cover ramps, and backstop unforeseen clouds or contingencies to maintain delivery profiles.
  
• Grid‑forming operation provides voltage/frequency support, inertia emulation, and black‑start capability, improving deliverability and reducing curtailment risk.
  
• Degradation and augmentation plans keep the BESS at its committed rating over the contract life, with pre-funded mid‑life upgrades to protect capacity obligations.
  
• Co‑optimizing energy shifting with contracted ancillary services improves project economics without exposing lenders to merchant volatility.
• Reduced reliance on fuel‑price‑exposed thermal peakers enhances system adequacy and resilience, supporting credible 24/7 availability targets.