Renewable energy solutions provider Scatec ASA has commenced construction on its large-scale Obelisk project in Egypt, featuring 1.1GW of solar power and 100MW / 200MWh of battery storage.
This milestone marks a significant step toward Egypt’s renewable energy ambitions, with the project set to deliver clean electricity to the national grid under a 25-year Power Purchase Agreement (PPA) backed by the Egyptian government.
The project will be developed in two phases. The first phase, consisting of 561MW of solar capacity combined with 100MW/20MWh of battery storage, is expected to be fully operational by the first half of 2026. The second phase, adding an additional 564MW of solar, is scheduled for completion in the latter half of 2026.
Financial arrangements for the project include secured funding through $120 million in equity bridge loans (EBL). These loans allow for the postponement of equity injections until the construction phase is completed. The Arab Energy Fund has committed $90 million in EBL, with a maturity date of the second quarter of 2028, while the European Bank for Reconstruction and Development (EBRD) will provide an additional $30 million, maturing in the first quarter of 2027.
Scatec has also signed a mandate letter with a consortium of development finance institutions for a long-term, non-recourse project loan on favourable terms. The company anticipates reaching financial close in the coming months. Additionally, Scatec is in advanced discussions with potential equity partners, expected to be finalized within the same timeframe.
“We are pleased to break ground on Egypt’s first hybrid solar and battery project, which aligns with the country’s ambitious renewable energy targets,” said Scatec CEO Terje Pilskog. “Egypt has set out to build substantial renewable capacity in the coming years, and this project is a key milestone in achieving those goals.”
