Africa’s second-largest economy secures $560 million solar mega-project as clean energy investments surge

Egypt has awarded a $560 million engineering, procurement and construction (EPC) contract for one of its largest solar and battery storage projects, underscoring the country’s growing appeal to global renewable energy investors as Africa’s clean energy transition gathers pace.

• Egypt has awarded a $560 million contract for one of its biggest solar and battery storage projects.
• The project will add 1GW of solar power and a 600MWh battery energy storage system.
• It reinforces Egypt’s ambition to become one of Africa’s leading renewable energy hubs.
• The investment comes as the country accelerates efforts to meet its renewable energy targets and strengthen electricity security. 

The contract was awarded to Hassan Allam Construction and India’s Sterling and Wilson Renewable Energy through their 50-50 joint venture for the West Minya Solar Power Project in Egypt’s Minya Governorate.

The project will combine 1,000 megawatts (MW) of solar photovoltaic generation with a 600-megawatt-hour (MWh) battery energy storage system (BESS), making it one of Egypt’s largest utility-scale solar-plus-storage developments once completed.

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The joint venture will undertake the full engineering, procurement and construction of the project, including the solar power plant, battery storage facilities, transmission infrastructure, grid interconnection and associated balance-of-plant works.

The project forms part of the Nefer Menya renewable energy initiative in Egypt’s western desert. It is majority-owned by Infinity Power Holding, while HAU Energy, a platform jointly backed by Hassan Allam Utilities, the European Bank for Reconstruction and Development (EBRD) and French infrastructure investor Meridiam, holds the remaining stake.

The EBRD is also considering providing up to $170 million in senior debt financing for the development, highlighting growing international confidence in Egypt’s renewable energy market.

The award comes weeks after Hassan Allam Construction secured a SAR2.7 billion ($727 million) contract to build the Waldorf Astoria Hotel and Mixed-Use Superblock at Saudi Arabia’s Diriyah development, extending the Egyptian group’s expansion across major infrastructure projects in the Middle East.

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Why it matters

The latest investment reflects a broader shift in Africa’s renewable energy industry, where governments are increasingly pairing large-scale solar plants with battery storage to improve grid reliability and reduce dependence on fossil fuels.

Unlike conventional solar farms, projects integrated with battery storage can supply electricity after sunset and during periods of peak demand, helping to stabilise national power grids while reducing the need for expensive backup generation.

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Egypt has emerged as one of Africa’s biggest renewable energy markets, attracting billions of dollars from multilateral lenders, sovereign-backed investors and private developers.

The country already hosts the Benban Solar Park, one of the world’s largest solar parks, and is expanding its renewable energy portfolio with new solar and wind projects across the country.

The government is targeting renewable energy to account for 42% of electricity generation by 2030, with officials viewing clean energy as central to improving energy security, reducing emissions and positioning Egypt as a regional electricity hub linking Africa, Europe and the Middle East.

The project also illustrates the growing role of battery storage in Africa’s energy transition. While utility-scale solar projects are becoming more common across the continent, large projects combining gigawatt-scale solar generation with battery storage remain relatively rare, making the West Minya development an important milestone for Egypt’s power sector.

For Sterling and Wilson Renewable Energy, the award marks its third gigawatt-scale EPC contract in the past nine months, further strengthening its presence in the global utility-scale renewable energy market.