EBRD Backs Scatec's 1-GW Solar Project in Egypt

• EBRD backs Scatec's groundbreaking 1-GW solar-storage project in Egypt with USD 30 million, paving the way for a greener future and significant carbon reduction.

The European Bank for Reconstruction and Development (EBRD) has confirmed a USD 30 million debt contribution to support Scatec ASA's 1-GW solar-storage project in Egypt. This funding is part of a larger USD 120 million package for the USD 590 million hybrid complex in Nagaa Hammadi, Upper Egypt. The project, managed by Scatec's Obelisk Solar Power, aims to establish one of Egypt's first hybrid renewable energy sites.

The project will feature a photovoltaic farm and a 100-MW/200-MWh battery energy storage system, expected to reduce carbon dioxide emissions by 1.36 million tonnes annually. Scatec plans to implement the project in phases, initially adding 561 MW of solar capacity and the full battery system. The complex will operate under a 25-year power purchase agreement with the Egyptian Electricity Transmission Company.

How will EBRD's funding impact Scatec's solar-storage project in Egypt?

• The EBRD's funding will enhance the financial viability of the project, ensuring that Scatec can proceed with construction and implementation without significant financial hurdles.
• It will help leverage additional investments from other financial institutions, potentially attracting more international and local investors to the renewable energy sector in Egypt.
  
• The funding will support the development of critical infrastructure, such as the photovoltaic farm and battery storage system, which are essential for the project's success.
  
• By facilitating the project's completion, the EBRD's contribution will help Egypt diversify its energy mix, reducing reliance on fossil fuels and enhancing energy security.
  
• The project will create job opportunities during the construction and operational phases, contributing to local economic development in Upper Egypt.
• The funding will aid in the transfer of technology and expertise, as Scatec will likely collaborate with local companies and workforce, enhancing skills and knowledge in the renewable energy sector.
• The successful implementation of the project could serve as a model for future hybrid renewable energy projects in the region, promoting further investments in sustainable energy solutions.
• The reduction in carbon emissions aligns with Egypt's climate goals and international commitments, supporting the country's transition to a low-carbon economy.