Scatec Launches Massive Solar-Battery Project in Egypt

• Scatec ASA launches Egypt's 1.1-GW Obelisk solar project, featuring cutting-edge battery storage and backed by major financial partners, set to transform renewable energy by 2026.

Norwegian renewables firm Scatec ASA has commenced construction on the 1.1-GW Obelisk solar project in Egypt, featuring a 100 MW/200 MWh battery storage system. The project, with an estimated capital expenditure of USD 590 million, is supported by USD 120 million in equity bridge loans. The Arab Energy Fund and the European Bank for Reconstruction and Development (EBRD) are providing loans of USD 90 million and USD 30 million, respectively, allowing Scatec to defer equity investments until construction completion.

Scatec is finalizing long-term, non-recourse project financing with development finance institutions and is in discussions with potential equity partners. The project will be constructed in two phases: the first phase, with 561 MW of solar and battery storage, is set for completion in early 2026, while the second phase, adding 564 MW of solar, is expected later that year. The energy will be supplied to the Egyptian Electricity Transmission Company under a 25-year agreement. Scatec will handle engineering, procurement, construction, asset management, and operations.

How is Scatec financing and structuring the 1.1-GW Obelisk solar project in Egypt?

• Scatec is utilizing a combination of equity bridge loans and long-term project financing to fund the Obelisk solar project.
• The project has secured USD 120 million in equity bridge loans to cover initial costs.
• The Arab Energy Fund is contributing USD 90 million in loans, while the European Bank for Reconstruction and Development (EBRD) is providing USD 30 million.
• Scatec is in the process of finalizing long-term, non-recourse project financing with development finance institutions.
• Discussions are ongoing with potential equity partners to share investment responsibilities.
• The project is structured in two phases, with the first phase including 561 MW of solar and battery storage, and the second phase adding 564 MW of solar capacity.
• Scatec will manage all aspects of the project, including engineering, procurement, construction, asset management, and operations.
• The energy produced will be sold to the Egyptian Electricity Transmission Company under a 25-year power purchase agreement.