MENA is shifting from standalone solar to large-scale solar-plus-storage. Here’s what the latest Saudi and Egyptian projects reveal for green tech and energy strategy.
MENA’s New Solar-Plus-Storage Wave: Why It Matters
Cross-border clean power isn’t theoretical anymore. With more than 3.9GW of new solar-plus-storage now moving ahead in Saudi Arabia and Egypt, the Middle East and North Africa (MENA) region is quietly building one of the world’s most interesting testbeds for green technology at scale.
On one side, Scatec’s 1.1GW Obelisk project in Egypt is pairing utility-scale solar with battery storage to support a fast-growing grid. On the other, ACWA Power and Bapco Energies are planning a 2.8GW solar plant with co-located batteries in Saudi Arabia’s Eastern Province to export clean electricity to Bahrain.
This matters because these aren’t just more solar farms. They’re integrated solar-plus-storage systems, backed by development finance and sophisticated equity structures, designed to deliver firm, dispatchable green power across borders. For anyone working in green technology, energy, or sustainability strategy, this is a preview of how large-scale clean power deals will be structured over the next decade.
In this post, I’ll unpack what’s happening in Saudi Arabia and Egypt, why batteries are at the center of this new wave, and what businesses and policymakers can actually learn from these projects.
The Big Shift: From Solar Projects to Solar-Plus-Storage Systems
The core shift in MENA right now is simple: solar alone is no longer enough at utility scale. The market is moving toward solar-plus-storage as the default model for serious decarbonisation.
Two flagship projects that signal the change
1. Scatec’s Obelisk solar-plus-storage project (Egypt)
- Capacity: 1.1GW of solar PV and a 100MW / 200MWh battery energy storage system (BESS)
- Structure: Built in two phases
- Phase 1: 561MW solar + 100MW/200MWh BESS
- Phase 2: Additional 564MW solar
- Offtaker: 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC)
- Financing: Total cost around US$590 million, backed by a non-recourse package from EBRD, AfDB, and BII
- Ownership: Scatec remains majority owner, with Norfund (25% stake in the holding company) and EDF (20% stake in the operating company) joining as partners
2. ACWA Power & Bapco Energies (Saudi Arabia–Bahrain)
- Capacity: 2.8GW of solar PV with co-located battery storage (BESS details not yet public)
- Location: Saudi Arabia’s Eastern Province
- Model: Built in several phases; electricity exported from Saudi Arabia to Bahrain for Bapco Energies’ operations
- Developers: ACWA Power (Saudi-based global developer) and Bapco Energies (Bahrain’s state-owned energy company)
Both projects send the same signal: green technology at grid scale now means combining generation with storage so clean power behaves more like traditional dispatchable capacity. That’s exactly where AI and digital tools fit in—optimising when to charge, discharge, and trade energy across time and borders.
Why Batteries Are Becoming Non-Negotiable in Green Power Deals
Solar-plus-storage is taking over because it solves the two biggest headaches of renewables at scale: intermittency and grid integration.
1. Turning variable solar into reliable capacity
A standalone solar farm follows the sun. A solar-plus-storage plant can follow demand.
By adding a 100MW/200MWh BESS to the Obelisk project, Scatec isn’t just selling midday electrons. It’s selling shaped, controllable power over a 25-year PPA. That’s exactly what grid operators and large buyers want:
- Reduced curtailment during midday peaks
- The ability to shift energy into evening demand hours
- Firm capacity that can be counted on in planning models
The same logic will apply to ACWA Power’s 2.8GW project. Co-located BESS means Bahrain can receive power in line with its industrial load profile rather than Saudi’s solar profile.
2. Stabilising grids that are modernising fast
Egypt and Saudi Arabia are both scaling renewables aggressively. As solar and wind shares grow, frequency control, ramping, and congestion become real constraints.
Well-designed BESS systems can:
- Provide fast frequency response
- Support black start capabilities
- Reduce the need for expensive peaking gas plants
- Defer grid reinforcement by managing bottlenecks locally
On the ground, this is where AI-driven energy management systems are already making a difference. Optimisation software can forecast solar output, demand, and market prices, then decide—minute by minute—how to operate the assets for both stability and revenue.
3. De-risking finance by making revenues more predictable
Development banks like EBRD and AfDB don’t chase hype. They finance projects with robust, predictable cashflows.
Solar-plus-storage helps because:
- Long-term PPAs (25 years for Obelisk) lock in stable revenue
- BESS allows compliance with grid codes and availability guarantees
- Higher dispatchability reduces the risk of curtailment and revenue volatility
For investors, the ability to model multi-service revenue streams—energy arbitrage, capacity payments, ancillary services—makes the asset class more bankable. I’ve seen that once one large PPA-backed storage project lands in a market, the follow-on deals get easier to structure.
How These Projects Fit the Bigger MENA Green Technology Story
These aren’t isolated announcements. They’re part of a pattern: MENA is positioning itself as a renewable energy exporter and regional grid hub.
Cross-border green power is becoming real infrastructure
The ACWA Power–Bapco Energies agreement is essentially a cross-border green power pipeline:
- Generation sits in Saudi Arabia where solar resources are excellent
- Demand sits in Bahrain, driven by industrial and economic growth
- Transmission ties them together, with storage smoothing out timing and reliability
We’re seeing similar concepts elsewhere in the region:
- UAE and Saudi grid interconnections
- Egypt positioning itself as a hub between Africa, the Middle East, and Europe
As interconnections deepen, AI-enabled grid management and forecasting tools will be critical to keep systems stable when huge volumes of variable renewable energy start flowing across borders.
Egypt as a battery storage pioneer in Africa
Obelisk isn’t Egypt’s first move in storage—and that’s what makes it interesting.
Recent milestones include:
- A 300MWh BESS at the 500MW Abydos Solar Project, commissioned by AMEA Power
- Contracts for Egypt’s first two standalone BESS projects, totalling 1,500MWh of storage
So, Egypt is quickly becoming a regional reference point for large-scale battery projects in Africa. That attracts more:
- Development finance
- Technology providers
- AI and digital optimisation platforms
For green tech companies, this is a strong signal: Africa’s early large projects are happening where policy, finance, and technology align, and Egypt is currently one of those alignment points.
Saudi Arabia’s quiet scale-up in solar
ACWA Power isn’t new to this game. In 2025 alone, it’s been working on:
- Al Kahfah, Ar Rass 2, and SAAD 2 projects, with a combined 2.7GW of solar
- Procurement from global module and tracker manufacturers
The 2.8GW Eastern Province project with Bapco adds another layer: co-located storage plus cross-border export. That’s exactly the type of asset that benefits most from smart controls, forecasting, and digital twins—all pillars of modern green technology.
What Businesses and Policymakers Can Learn from Obelisk and ACWA–Bapco
Most companies and agencies won’t be building gigawatt-scale solar plants. But the underlying design and financing principles are directly relevant, whether you’re planning a 10MW project or a national roadmap.
1. Treat storage as core infrastructure, not an add-on
The reality? Retrofitting batteries later is almost always more expensive than designing for them upfront.
Both Obelisk and the ACWA–Bapco project build storage into the architecture from day one. For your own strategy:
- If you’re procuring renewable PPAs, ask for shaped or firmed products, not just “as-produced” solar
- When planning distributed solar, model scenarios with co-located BESS to reduce demand charges and grid constraints
- Use AI-based modelling tools to simulate multi-year performance and revenue, not just static spreadsheets
2. Use partnerships to scale faster and de-risk
Scatec’s equity deals with Norfund and EDF aren’t just about money; they’re about risk sharing and expertise.
Smart partnership patterns to copy:
- Pair developers with development finance institutions for early large projects
- Combine local utilities with international IPPs to manage regulatory and operational risk
- Bring in technology partners (for AI optimisation, forecasting, and grid integration) on long-term service models rather than one-off software deals
If you’re a corporate buyer or industrial offtaker, you don’t need to own the assets—but you do need to understand who sits in the cap table and whether they have the staying power for 20–25 years.
3. Lock in long-term certainty with smart contract design
The 25-year PPAs in Egypt aren’t an accident. They’re a design choice that aligns investors, lenders, and the offtaker around a stable framework.
For policymakers and regulators:
- Standardised long-term PPAs with clear penalty, curtailment, and indexation rules can unlock billions in investment
- Grid codes should explicitly value and define storage services (frequency response, reserves, capacity)
For large energy users:
- Look for renewable-plus-storage PPAs that match your actual hourly load
- Consider clauses for flexible load or demand response, which can pair beautifully with storage
4. Use digital and AI tools as force multipliers
These gigawatt-scale projects only reach full value if they’re operated intelligently. That’s where AI fits squarely into the green technology story:
- Forecasting solar output based on weather data
- Predicting demand patterns and price signals
- Optimising charge/discharge schedules for maximum revenue and minimum wear
- Coordinating multiple assets as a virtual power plant
You don’t need a giant portfolio to benefit. I’ve seen 10–20MW projects gain meaningful uplift just by upgrading from static schedules to AI-based optimisation.
Where MENA Solar-Plus-Storage Goes Next
Taken together, Scatec’s Obelisk project and the ACWA Power–Bapco Energies deal show where large-scale green technology is heading: integrated, data-driven, cross-border clean energy systems.
For MENA, this is more than climate PR. It’s about building:
- New export industries based on green electrons, not just hydrocarbons
- More resilient grids that can handle shocks and rapid demand growth
- A platform for AI-powered grid management and smart energy services
For businesses, the message is clear: if your energy or sustainability plans still treat storage, digital optimisation, or cross-border flexibility as “future topics,” you’re already behind the curve set by these projects.
The next wave of competitive advantage in green technology won’t just come from adding more renewables. It’ll come from orchestrating those renewables with storage, software, and smarter contracts.
Now is the time to ask: where in your portfolio—or your policy framework—could a solar-plus-storage mindset unlock more reliability, more value, and a smaller carbon footprint at the same time?