Scatec Begins Construction Of 900 MW Shadwan Wind Project In Egypt

Scatec ASA, in partnership with EDF power solutions, has started construction of the 900 MW Shadwan onshore wind project in Egypt. The project is expected to become one of the largest onshore wind farms in Africa and will support Egypt’s efforts to expand renewable energy generation.

The Shadwan project has a total estimated capital expenditure of USD 716 million. Once operational, it is expected to generate approximately 4 TWh of electricity annually and avoid around 1.6 million tonnes of carbon dioxide emissions each year.

Scatec has signed a joint development agreement with EDF power solutions for a targeted 29% equity stake in the project. The company also plans to bring additional equity partners into Shadwan as development progresses.

To support the project, Scatec has signed equity bridge loan agreements worth USD 150 million with The Arab Energy Fund (TAEF). The three-year facility includes USD 50 million allocated to the Shadwan wind project and USD 100 million for Scatec’s 1,950 MW solar and 3,935 MWh battery energy storage system (BESS) Energy Valley project.

The financing structure is designed to reduce Scatec’s immediate equity funding requirement. The company will combine the equity bridge financing from TAEF with cash flows generated through its engineering, procurement and construction activities.

Scatec has also signed mandate letters with a consortium of development finance institutions for long-term non-recourse project financing for both Shadwan and Energy Valley. Financial close for the projects is expected by the end of 2026. Construction of the Energy Valley project is also targeted to begin by year-end.

Scatec will provide EPC, asset management, and operations and maintenance services for both projects. Shadwan will be developed in phases, with the first phase expected to achieve commercial operation by the end of 2027.

Scatec CEO Terje Pilskog said the milestones demonstrate the scale of the company’s renewable energy development activities in Egypt. He added that Shadwan and Energy Valley are important to the company’s ambition to build a large renewable energy portfolio in the country.

EDF power solutions CEO Béatrice Buffon said the Shadwan project would use Egypt’s strong wind resources to deliver competitive, low-carbon electricity and support the country’s renewable energy ambitions.

TAEF Chief Banking Officer Nicolas Thevenot said the financing reflects the fund’s commitment to supporting energy infrastructure that strengthens energy security and sustainability in Egypt.