Egypt has begun construction of what the government describes as the first specialised battery energy storage systems assembly plant in the Middle East and Africa, marking a significant step in the country’s efforts to expand renewable energy infrastructure and local manufacturing.
The US$50 million (€43.2 million) facility is being developed by Chinese renewable energy company Sungrow Power Supply Co within the Suez Canal Economic Zone (SCZONE). According to a statement from Egypt’s Cabinet, the project is expected to create more than 100 direct jobs while supporting technology transfer and the localisation of renewable energy manufacturing.
The groundbreaking ceremony was attended by senior government and industry officials, including Minister of Industry Khaled Hashem, Minister of State for Military Production Salah Soliman Gemblat, Minister of Electricity and Renewable Energy Mahmoud Esmat and SCZONE Chairman Mostafa Shikhoun.
Speaking at the ceremony, Hashem described the project as particularly significant because it represents the region’s first factory dedicated to energy storage systems. He said the facility would contribute to Egypt’s clean energy transition, strengthen the stability of the national electricity grid and improve its ability to accommodate a growing proportion of renewable power.
Beyond manufacturing capacity, Hashem said the investment would also contribute to developing a skilled Egyptian workforce while facilitating the transfer of technical knowledge and expertise.
The project comes as Egypt accelerates plans to increase renewable energy’s contribution to its electricity mix. The country is targeting a 45% renewable energy share by 2028.
Under its expansion plans, Egypt aims to increase installed renewable energy capacity from more than 9,500 MW to 27,705 MW by 2028. Battery storage capacity is also projected to reach 14,320 MWh within the same period.
The Sungrow facility could therefore play an important role in supporting Egypt’s growing renewable energy ecosystem by providing locally assembled storage solutions needed to manage intermittent sources such as solar and wind power.