Scatec ASA has reached financial close for the “Obelisk” hybrid solar and battery storage project in Egypt.
The 1.1 GW solar plus 100 MW/200 MWh battery energy storage system (BESS) project is backed by non-recourse financing of USD 479.1 million. The funding is provided by the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment (BII), and covers approximately 80% of the total estimated capital expenditure of USD 590 million.
“Reaching financial close for this project marks a major milestone for Scatec. It proves our ability to deliver large-scale hybrid projects. We are proud to partner with leading development finance institutions to support Egypt’s clean energy ambitions, and we look forward to delivering this important project together with our partners,” says Scatec CEO Terje Pilskog.
The Obelisk project will be developed in two phases. The first phase, consisting of 561 MW solar capacity and 100 MW/200 MWh battery storage, is expected to reach commercial operation in the first half of 2026. The second phase, comprising 564 MW of solar, is scheduled for the second half of 2026.
Electricity from the project will be sold under a USD-denominated 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), supported by a sovereign guarantee.
Scatec has previously secured equity bridge loans (EBL) of USD 120 million, enabling the company to postpone equity contributions until the end of the construction period. Discussions with potential equity partners are also in advanced stages and are expected to conclude in the coming months.
Scatec will be responsible for delivering Engineering, Procurement and Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services. The EPC scope accounts for approximately 70% of the total capital expenditure.
