JA Solar to supply 1.25GW of panels to Egyptian project

From the newsletter
The China-based solar manufacturer has inked a major deal to supply 1.25GW of solar modules for the Abydos Phase II project in Egypt. This agreement was announced at the World Future Energy Summit 2025, in Abu Dhabi. The project will be developed by AMEA Power and constructed by China Energy Engineering Corporation (CEEC).

• The first phase of the project involved the construction of a 500 MW facility at an estimated cost of $440 million. This phase was completed in October 2024 and now supplies electricity to over 256,000 homes.

• The second phase of the project will not only involve the installation of solar modules but will also incorporate a 600 MWh battery storage system–the continent's largest energy storage system. It is expected to generate approximately 3,000 GWh annually, supplying electricity to more than 500,000 households and offsetting over 1 million tonnes of carbon dioxide emissions per year.

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• This isn't JA Solar's first foray into the African market. The company has been building its presence with notable projects, including the Benban Solar Park in Egypt, where it supplied 1.8 GW of modules, and the Redstone Solar Thermal Power Plant in South Africa, with a capacity of 100 MW of concentrated solar power (CSP).

• Egypt has been undertaking major renewable energy-based projects in both wind and solar. In the wind energy segment, it is building The Suez Wind Farm. With a projected cost of $1.2 billion, it will generate 1,100 MW upon completion. Developed in two phases of 550 MW each, it will be the largest wind farm on the continent.

• These efforts have contributed to a significant increase in Egypt's renewable energy capacity. Currently, Egypt has an installed capacity of 1.6 GW in wind and 3.7 GW in solar energy. Last year alone, solar installations reached 707 MW, second only to South Africa. 

• Egypt has more solar potential, with its vast desert areas receiving high levels of solar irradiation and it could play a big role in the country's 2035 goal to generate 42% of its electricity from renewables.

• It has created a favourable environment through its policy framework to support its renewable energy targets. The policy framework includes feed-in tariffs, net metering, and allowing public-private partnerships. These policies incentivise investment in renewable energy and facilitate its integration into the national grid.

• However, there is a challenge with integrating renewables into the grid. The country is focusing not only on setting up renewable energy projects but also on incorporating battery storage as a mechanism to ensure grid stability.

• Across Africa, we are seeing the same trend. The latest bid rounds for 2024 for South Africa's renewable energy projects prioritise bids with energy storage components. In Kenya, the government is working towards creating policies and regulations that will require all renewable energy projects to have energy storage systems to be considered.

• The potential for renewable energy in Africa remains high, with less than 2% of solar and wind potential tapped at the moment. Implementation of favourable policies is key to ensuring that Africa attracts investors and also protects them, enabling them to recoup their investment costs along with reasonable profits.

Our take

• The cost of solar is projected to decline and this will serve as a strong incentive driving its widespread adoption across Africa. This trend is only expected to accelerate, making solar an increasingly cost-competitive solution for meeting the continent's growing energy needs. However, the inherent variability of solar power introduces complexities in grid management, requiring careful planning and innovative solutions.

• Simply building large-scale solar farms is not enough. To truly harness the potential of solar, African nations must prioritise the integration of hybrid systems and energy storage. This means combining solar with other renewable sources like wind and hydro, as well as incorporating technologies like battery storage to smooth out fluctuations in generation and ensure a reliable electricity supply.

• Technology, especially AI, can also play a vital role in renewable grid management. By providing accurate forecasting data and generation estimates for renewable energy projects, as well as detailed demand data, AI empowers grid managers and operators to anticipate generation and consumption fluctuations. This allows them to optimise operations and ensure grid stability.