Scatec secures $479mn financing for major solar project in Egypt

Scatec ASA finalises financing for its hybrid solar-battery Obelisk project in Egypt, securing $479.1 million from international financial institutions for a planned capacity of 1.1 GW solar and 100 MW storage.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Scatec ASA has announced the financial close for its hybrid project combining a 1.1 gigawatt (GW) solar plant with a 100 megawatt (MW) / 200 megawatt-hour (MWh) Battery Energy Storage System (BESS) in Egypt. The total estimated cost for the project, named Obelisk, amounts to $590 million, approximately 80% of which will be financed by non-recourse debt amounting to $479.1 million.

International financial partners

Funding is provided by the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and British International Investment (BII). These funds are complemented by Equity Bridge Loans (EBL), previously secured by Scatec, amounting to $120 million. These bridge loans enable Scatec to postpone equity injections until the end of the construction period.

Scatec ASA Chief Executive Officer, Terje Pilskog, stated in a press release that the completion of this financing arrangement represents a significant milestone for the company. He further highlighted the collaboration with international financial institutions, emphasising their role in supporting Egypt’s energy ambitions.

Two-phase development

The Obelisk project will be implemented in two separate phases. The first phase will involve commissioning 561 MW of solar capacity along with a battery storage capacity of 100 MW / 200 MWh, with a targeted Commercial Operation Date (COD) in the first half of 2026. The second phase, comprising 564 MW of solar capacity, is expected to become operational in the second half of 2026.

The energy generated will be sold to the national utility Egyptian Electricity Transmission Company (EETC) under a dollar-denominated, 25-year Power Purchase Agreement (PPA), supported by a sovereign guarantee from the Egyptian state.

Services and partnerships under negotiation

Scatec will directly undertake approximately 70% of the total estimated project cost through its Engineering, Procurement and Construction (EPC) services. The company will also provide Asset Management (AM) and Operations & Maintenance (O&M) services.

Additionally, Scatec has indicated it is engaged in advanced discussions with several potential equity investors, a process expected to conclude in the coming months. This effort is part of a strategy to effectively structure the equity funding required to complete the project financing.

Mars signs a major contract with GoldenPeaks Capital to develop over 100 solar plants in Poland, aiming to power its European operations and supply chain with renewable electricity.
Doral Renewables has signed a power purchase agreement for 75% of the output from its Cold Creek Solar project, expanding its contracted portfolio to over 1.6 GW nationwide.
SNCF Voyageurs secures direct solar electricity supply from two plants owned by Octopus Energy and BayWa r.e., through 25-year agreements aimed at powering its rail network.
The end of China's VAT rebate and reduced output bring an end to eighteen months of historically low prices in solar and storage sectors.
The Kuwait Authority for Partnership Projects has shortlisted several companies for Phase III of the Al Dibdibah solar plant, with a net capacity of 500 MW.
The Central Electricity Regulatory Commission has agreed to examine compensation claims by ACME Solar and AMPIN Energy, citing losses caused by non-operational transmission lines.
Waaree Energies has activated a new 950 MW photovoltaic module production line in Degam, strengthening its industrial investment programme in western India.
India opens a new rooftop solar tender phase, offering 3,640 kW under the RESCO model, with a pre-bid meeting held online on October 6 by Solar Energy Corporation of India.
The Japanese developer has reached a total of 100MW in solar capacity under power purchase agreements with Microsoft, spread across four projects in the country, two of which are already operational.
SNCF Énergie signed four new renewable electricity purchase agreements with Neoen in July, covering the annual consumption equivalent of the TGV Paris–Bordeaux line.
RWE has inaugurated a 4 megawatt-peak solar park in Charente-Maritime, built on a former municipal landfill site and capable of supplying electricity to approximately 1,500 households.
EDF power solutions and El Paso Electric have started operations at the Milagro Energy Center, combining 150 MW of solar photovoltaic capacity and 75 MW of battery storage under a 20-year power purchase agreement.
Producer Red Rocket has finalised financing for a 331 MWp solar park in Mpumalanga, backed by a 20-year power purchase agreement with Discovery Green.
Sun Investment Group has launched a crowdfunding campaign with Enerfip to raise up to €1.6mn ($1.7mn) to support the development of twelve photovoltaic plants in Italy totalling 113 MW.
GreenYellow will develop a 1.5 MWp photovoltaic plant in Mauritius for Volailles et Traditions, with an expected annual output of 2.45 GWh fed into the national power grid.
An alternative energy scenario proposes increasing solar and storage capacity by 2037 to reduce fossil fuel dependence and cut electricity generation costs in Thailand.
Osaka Gas and Daiwa Energy & Infrastructure have formed a partnership to expand their renewable energy business with the acquisition of a 25MW solar power plant in Kyoto, formerly owned by Kyocera TCL Solar.
Global South Utilities, filiale de Resources Investment LTD, inaugure à N’Djamena la centrale Noor Chad de 50 MW avec 5 MWh de stockage, dimensionnée pour alimenter des centaines de milliers de foyers et exploitée directement par l’entreprise.
Nine African countries will receive €545mn ($638mn) in European Union funding to support rural electrification and strengthen regional renewable energy infrastructure.
TotalEnergies will transfer half of a 1.4 gigawatt solar portfolio to KKR, strengthening its position in the North American power market while securing $950 million through the sale and bank refinancing.