Egypt starts construction of $50 mln Sungrow energy storage plant
Egypt has begun construction of a $50 million energy-storage systems plant in the Suez Canal Economic Zone (SCZONE), a project officials described as the first specialised facility of its kind in the Middle East and Africa.
The factory, being developed by Chinese renewable-energy company Sungrow, will be located in the Sokhna Industrial Zone within the TEDA-Egypt industrial area and is expected to create more than 100 jobs, the SCZONE authority said in a statement on Monday.
The facility will assemble energy-storage systems as Egypt seeks to expand renewable power generation and strengthen the electricity grid’s ability to accommodate a growing share of intermittent renewable energy.
SCZONE Chairman Moustafa Shaikhon said the project would support the localisation of energy-storage manufacturing and increase domestic industrial production, while highlighting the zone’s infrastructure and proximity to ports.
The project also reflects growing industrial cooperation between Egypt and China, Shaikhon said.
Egypt has been seeking investment in renewable-energy equipment as part of efforts to expand clean power generation and reduce reliance on fossil fuels.
Electricity and Renewable Energy Minister Mahmoud Esmat said the Sungrow factory would contribute to building an integrated local manufacturing base for renewable-energy equipment and energy-storage systems, with the longer-term aim of strengthening Egypt’s position as a regional manufacturing and export hub.
“The project is particularly important as it is the first specialised factory for manufacturing energy-storage systems in the Middle East and Africa. It is also an important step towards supporting the transition to clean energy, strengthening the stability of the national electricity grid and increasing its ability to accommodate a growing share of renewable energy through advanced energy-storage solutions,” Industry Minister Khaled Hashem said.
He called on Sungrow to increase the share of locally sourced components and expand cooperation with Egyptian research institutions to facilitate the transfer of advanced technologies.
“The project’s industrial value goes beyond its production capacity to include developing qualified Egyptian workers, transferring technology and expertise, and supporting local industries, helping maximise its added value to the national economy,” Hashem said.
Storage key to renewable expansion
Energy storage is becoming increasingly important to Egypt’s plans to expand renewable generation, as storage systems can help stabilise the grid and manage fluctuations in solar and other intermittent power sources.
The government has been working to strengthen the national grid and increase its capacity to accommodate a growing share of renewable energy, Esmat said.
The Sungrow project will also support renewable energy developments in Egypt, including Scatec’s Wadi El Energy project, creating a link between renewable power generation and energy storage systems, SCZONE said.
Thompson Meng, Vice President of Sungrow PV and Storage Business Group, said the factory would combine advanced technology with manufacturing capabilities and help the company expand its presence in Middle Eastern and African markets.