Scatec ASA has begun construction on its 1.1 GW Obelisk solar project and an integrated 100 MW/200 MWh battery energy storage system in Egypt. 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 project will be developed in two phases: the first phase, comprising 561 MW of solar capacity along with the 100 MW/200 MWh battery system, is scheduled to become operational in the first half of 2026. The second phase, adding 564 MW of solar capacity, is expected to reach commercial operations in the second half of 2026.
To support the project’s financing, Scatec has secured USD 120 million in equity bridge loans (EBLs), deferring equity contributions until the end of construction. The Arab Energy Fund will provide a USD 90 million EBL maturing in Q2 2028, while the European Bank for Reconstruction and Development (EBRD) will contribute USD 30 million, maturing in Q1 2027. “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 Scatec CEO Terje Pilskog
Additionally, Scatec has signed a mandate letter with a consortium of development finance institutions to secure long-term, non-recourse project financing on favorable terms, with financial close anticipated in the coming months. Discussions with prospective equity partners are also well advanced and expected to conclude within the same period.
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