Scatec ASA has started construction on a 1.1 GW solar + 100 MW/200 MWh battery storage project in Egypt
It involves $590 million in CapEx, with 80% of it targeted through long-term non-recourse debt
Commercial operations to start in 2 phases through 2026
Norway-based renewable energy solutions provider, Scatec ASA, has officially begun the construction of its landmark 1.1 GW Obelisk solar and 100 MW/200 MWh battery storage project in Egypt. This marks a major milestone for the country’s renewable energy ambitions. The electricity generated will be sold under a 25-year USD-denominated Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), secured by a sovereign guarantee.
The Obelisk project will be rolled out in 2 phases:
The first phase, with 561 MW of solar capacity and 100 MW/200 MWh of battery storage, is scheduled to reach commercial operation in the first half of 2026
The second phase, comprising 564 MW of solar, is set to follow in the second half of 2026
Scatec has secured $120 million in equity bridge loans (EBL) for the project, allowing the deferral of equity injections until the end of construction. The Arab Energy Fund will provide a $90 million EBL maturing in Q2 2028, while the European Bank for Reconstruction and Development (EBRD) will contribute $30 million maturing in Q1 2027.
The company has also signed a mandate letter with a consortium of development finance institutions to secure long-term non-recourse project debt on favorable terms, with financial close expected in the coming months. Scatec is currently in advanced discussions with potential equity partners, with agreements anticipated in the same timeframe.
“We are proud to break ground on Egypt’s first hybrid solar and battery project, building on our proven track record with similar developments. Egypt has ambitious targets to build out significant renewable energy capacity the coming years, and this milestone further strengthens Scatec’s position as a leading renewable energy producer in the country,” said Terje Pilskog, CEO of Scatec.
The project’s total capital expenditure is projected at approximately $590 million, with 80% targeted through non-recourse long-term debt. Scatec will deliver Engineering, Procurement and Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services, with its EPC scope accounting for roughly 70% of the total CapEx, lower than previously announced due to EPC structure optimizations, but with unchanged gross profit for Scatec.
Last year, Scatec signed an agreement with the PtX Development Fund for a grant of €30 million ($33 million) (see Middle East & Africa Solar PV News Snippets).