Scatec starts construction of large scale solar and battery storage project in Egypt

Scatec ASA has commenced construction of its 1.1 GW Obelisk solar and 100 MW/200 MWh battery storage project in Egypt. 

The project will be constructed in two phases. The first phase of 561 MW solar + 100 MW/200 MWh battery storage is targeted to reach commercial operational date (COD) in the first half of 2026 and the second phase of 564 MW solar in the second half of 2026. The energy will be sold under a USD-denominated 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), backed by a sovereign guarantee. 

Scatec has secured US$120 million in equity bridge loans, with US$90 million from the Arab Energy Fund and US$30 million from the European Bank for Reconstruction and Development (EBRD). The remaining capital is expected to be financed through long-term, non-recourse project debt. Scatec will provide Engineering, Procurement, and Construction (EPC) services, as well as Asset Management (AM) and Operations & Maintenance (O&M) services for the project. Total capex for the project is approximately USD 590 million to be partly financed by a targeted 80% non-recourse long-term project debt.