Deal factsCountry: Egypt · Technology: Battery manufacturing · Stage: Construction · Size: 10 GWh a year · Value: US$50m · Parties: Sungrow, PowerChina, Scatec
Chinese inverter and storage manufacturer Sungrow has begun construction of a $50 million battery energy storage system factory in Egypt with an annual capacity of 10GWh, the first dedicated BESS manufacturing facility in the Middle East and Africa. The plant is located in the China-Egypt TEDA Suez Economic and Trade Cooperation Zone at Ain Sokhna, inside the Suez Canal Economic Zone, and is scheduled to begin production in April 2027.
The site covers roughly 50,000 square metres, with about 18,000 square metres of building space, and is expected to create more than 100 direct jobs. The ground breaking ceremony took place on 17 August 2026. PowerChina is the construction contractor, in what pv magazine reports is that company’s first industrial manufacturing project in Egypt. The facility will assemble storage products for the Egyptian market and for export, which positions it as a regional supply point for projects across North Africa, the Gulf and sub-Saharan Africa.
Anchor demand is already in place. Scatec’s Energy Valley project, which holds a 25 year power purchase agreement with the Egyptian Electricity Transmission Company covering 1.95GW of solar and 3.9GWh of battery storage, is lined up as a major customer for the plant’s output. The factory forms part of a broader $1.8 billion renewable energy and localisation package announced in January 2026, and it builds on Sungrow’s regional track record, including a 7.8GWh storage project connected in Saudi Arabia in December 2025.
The Egyptian plant sits alongside the company’s other overseas expansion. In Poland, Sungrow is investing 230 million euros in a facility with 20GW of inverter capacity and 12.5GWh of storage systems a year, a sign that the company is building regional assembly close to demand centres rather than shipping everything from China.
Why does this matter?
Egypt has contracted several gigawatt hours of grid scale storage in a short period, and it is not alone in the region. A local assembly line shortens delivery times, reduces shipping and tariff risk, and helps developers meet the local content expectations that governments from Cairo to Riyadh are writing into procurement rules.
What happens next?
Construction now runs towards the April 2027 production start, with the Energy Valley battery scope the obvious first order to watch. Competing suppliers will have to decide whether to follow with their own regional assembly, and Egyptian authorities will be looking for the plant to deliver the export volumes promised under the Suez Canal Economic Zone’s industrial strategy. Developers bidding storage projects in Egypt and neighbouring markets should factor a domestic supply option into their 2027 procurement plans.
Sources: pv magazine: Sungrow breaks ground on 10 GWh battery storage factory in Egypt; REGlobal: Sungrow begins construction of 10 GWh Egyptian BESS manufacturing facility.
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