Sungrow Power Supply has started construction of a $50 million energy storage systems plant in Egypt, creating new local manufacturing capacity as the country works to expand renewable energy and strengthen its electricity grid.
The project was launched on 17 August 2026 in the China-Egypt TEDA industrial zone within the Suez Canal Economic Zone. Egyptian officials described the facility as the first of its kind in the Middle East and Africa.
The investment is expected to support Egypt’s clean-energy transition by producing battery storage equipment locally, helping the country manage the growing amount of electricity generated from renewable sources. It also forms part of Egypt’s wider industrial development strategy, which seeks to attract investment in advanced technologies, increase domestic manufacturing and connect local industry to global supply chains.
Egyptian Industry Minister Khaled Hashem, who attended the groundbreaking, said the project would support the country’s clean-energy transition by improving grid stability and helping the national power system accommodate additional renewable generation.
Supporting Egypt’s Renewable Energy Expansion
Energy storage is becoming increasingly important as Egypt expands solar and wind power. Storage systems can hold electricity when renewable generation is high and release it when demand rises or generation falls. This can help reduce pressure on the grid and make renewable energy more reliable.
The new plant could also strengthen Egypt’s domestic renewable energy supply chain by allowing some energy storage equipment to be produced locally rather than relying entirely on imports.
Mostafa Shekoun, chairman of the Suez Canal Economic Zone, said the investment would contribute to domestic production of energy storage systems while supporting the development of Egypt’s renewable energy industries.
Egypt is targeting a 42% share of renewables in its electricity mix by 2030 and more than 60% by 2040. Official figures cited in the project announcement show that the country had more than 25 GW of renewable energy capacity either in operation or under development in 2025.
At the same time, Egypt is expanding its electricity infrastructure to accommodate new generation capacity. The second phase of the country’s grid expansion programme includes about 105 projects, according to the electricity minister.
Strengthening Egypt’s Regional Energy Ambitions
The Sungrow investment also supports Egypt’s broader ambition to become a regional energy hub. The country is exploring opportunities to export renewable electricity and green hydrogen to Europe through proposed Euro-Mediterranean energy corridors.
Developing local manufacturing capacity for energy storage systems could become increasingly important as these projects move forward. A stronger domestic supply chain would give Egypt greater capacity to support renewable energy projects while creating opportunities for industrial development and investment.
Beyond the immediate construction of the plant, the project therefore represents an expansion of Egypt’s role in the renewable energy value chain. By combining renewable energy development, grid investment and local manufacturing, the country is seeking to build the infrastructure needed to support a larger clean-energy sector and strengthen its position in regional energy markets.
