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

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.