Ahram Online: Emirati renewable energy developer AMEA Power has inked a contract with China Energy Engineering Company (CEEC) and China Energy International Company (CEIG) to establish two battery energy storage system (BESS) plants and a factory in Egypt, the Electricity and Renewable Energy Ministry stated on Thursday.

The agreement includes the establishment of a 500-megawatt-hour (MWh) BESS plant in the Zafarana area on the Red Sea and a 1000 MWh BESS plant in the Benban area in Aswan.

The Zafarana and Benban plants will be managed by special purpose vehicle (SVP) firms Horus for Battery Energy Storage S.A.E. and Nefertiti for Battery Energy Storage S.A.E, respectively.

AMEA Power, a subsidiary of the Emirati Al Nowais Group, had previously established the two companies.

The signing also covers the establishment of a battery energy storage factory with an annual capacity of 3,000 megawatts (MW).

The projects align with the country’s aims to reduce pressure on its fuel consumption, ensure its grid stability, and secure the electricity supply amid rising demand and global market volatility.

Moreover, they are part of Egypt’s plans to reach a production capacity of 14,320 MWh from energy storage batteries in 2028, according to Electricity and Renewable Energy Minister Mahmoud Esmat, who attended the signing.

AMEA has been a key player in Egypt’s renewable energy sector, with investments exceeding $3 billion across solar, wind, and battery storage projects.

The energy-producing capacity of the company’s projects in Egypt amounts to 2,500 MW from wind and solar projects, and 2,400 MWh from BESS.

AMEA is also awaiting the European Bank for Reconstruction and Development’s (EBRD) approval on a $61 million loan for the Zafarana area project and a $162.5 million loan for the Benban area project, according to the bank.

Furthermore, the government plans to add 3,000 MW of solar capacity and 600 MW of battery storage before summer 2026 as it seeks to turn Egypt into a renewable energy hub and expand its energy sector, which constitutes one of Egypt’s five priority sectors. 

Approximately 2,500 megawatts of renewable energy capacity is expected to be added to the national grid in 2026.

Efforts are also underway to improve the efficiency of power generation units and expand renewable energy projects as Egypt plans to produce 45 percent of its energy from renewable sources by 2028.