Scatec Launches $590M Egypt Project

Key Figures & Findings: Scatec, a Norwegian renewable power producer, has begun construction of its 1.1GW Obelisk solar and 100MW/200MWh battery storage project in Egypt. The project will deliver energy under a 25-year USD-denominated Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), backed by a sovereign guarantee. Construction will occur in two phases: 561MW solar + battery storage (COD in H1 2026) and 564MW solar (COD in H2 2026). The project’s total capex is estimated at $590 million.

Statistics & Insights: The financing includes $120M in equity bridge loans—$90M from the Arab Energy Fund (maturing Q2 2028) and $30M from the EBRD (maturing Q1 2027). Scatec also signed a mandate letter with DFIs for 80% long-term non-recourse debt. Its EPC scope covers ~70% of the capex. The company will handle the project's EPC, asset management, and O&M.

Future Implications: If completed as planned by end-2026, the project could become one of the largest solar-plus-storage projects in North Africa, improving grid stability and accelerating Egypt’s transition to clean energy. Long-term debt and equity closure is expected within months.

Source:  Green Building Africa