Scatec ASA has successfully reached financial close for its large-scale “Obelisk” hybrid solar and battery storage project in Egypt, marking a major milestone in the country’s renewable energy development. The project is backed by a non-recourse financing package of USD 479.1 million, secured from leading international financial institutions including the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment (BII). This financing represents around 80% of the project’s total estimated capital expenditure, which stands at USD 590 million.
The Obelisk project will be built in two phases. The first phase, expected to be operational in the first half of 2026, includes 561 megawatts (MW) of solar generation capacity and 100 MW/200 megawatt-hours (MWh) of battery storage. The second phase, comprising an additional 564 MW of solar capacity, is scheduled to come online in the second half of 2026. All electricity generated will be sold through a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC). The agreement is denominated in U.S. dollars and secured with a sovereign guarantee, ensuring long-term financial stability for the project.
Terje Pilskog, CEO of Scatec, stated, “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.”
To optimize its financial structure, Scatec has already secured USD 120 million in equity bridge loans (EBL), allowing the company to defer its equity contribution until the end of the construction phase. Additionally, Scatec is in advanced negotiations with potential equity partners and expects to finalize those agreements in the coming months. As the lead project developer, Scatec will also take on full responsibility for Engineering, Procurement and Construction (EPC), as well as ongoing Asset Management (AM) and Operations & Maintenance (O&M) services.
Notably, the EPC portion alone accounts for roughly 70% of the project’s total capital expenditure. The Obelisk project strengthens Scatec’s position as a key player in the global clean energy transition and reinforces Egypt’s ambitions to scale up its renewable energy capacity through innovative hybrid systems that combine solar generation with battery storage.
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