Sungrow Breaks Ground on $50 Million Energy Storage Plant in Egypt

Sungrow Power Supply has broken ground on a $50 million energy storage systems plant in Egypt, adding local manufacturing capacity for battery storage equipment as the country expands its renewable energy sector. The project was launched on 17 August 2026 in the China-Egypt TEDA industrial zone within the Suez Canal Economic Zone. Egyptian officials described it as the first facility of its kind in the Middle East and Africa.

The plant is part of Egypt’s industrial development strategy, which aims to attract investment in advanced technologies, strengthen domestic manufacturing and connect Egyptian 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.

Mostafa Shekoun, chairman of the Suez Canal Economic Zone, said the investment would contribute to domestic production of energy storage systems and support the development of Egypt’s renewable energy industries.

Storage Supports Renewable Energy Growth

Energy storage can help power grids manage fluctuations in solar and wind generation by storing electricity when supply is high and releasing it when needed. Local production could also support Egypt’s efforts to increase domestic content in its renewable energy supply chain and reduce reliance on imported equipment.

Egypt aims to increase the share of renewables in its electricity mix to 42% by 2030 and above 60% by 2040. Official data cited in the project announcement puts the country’s renewable energy capacity at more than 25 GW in operation or under development in 2025. At the same time, Egypt is investing in its electricity grid to accommodate additional generation. The second phase of the country’s grid expansion programme includes around 105 projects, according to the electricity minister.

Egypt Targets Regional Energy Role

The storage plant also fits into Egypt’s plans to develop its renewable energy industry and strengthen its position as a regional energy hub. The country is exploring the export of renewable electricity and green hydrogen to Europe, supported by proposed Euro-Mediterranean energy corridors. Greater domestic manufacturing capacity could support some of the infrastructure required as these projects develop.