Scatec, EDF Begin 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, which is set to become one of the largest onshore wind farms in Africa.

In connection with the project, Scatec has signed equity bridge loan (EBL) agreements worth USD 150 million with The Arab Energy Fund (TAEF). The three-year facility includes USD 50 million for the Shadwan wind project and USD 100 million for the 1,950 MW solar and 3,935 MWh BESS Energy Valley project.

Scatec has also entered into a joint development agreement with EDF, targeting a 29% equity stake in Shadwan. The company plans to bring additional equity partners into the project.

The Shadwan project has an estimated total capital expenditure of USD 716 million and is expected to generate approximately 4 TWh of electricity annually. The project is also projected to avoid around 1.6 million tonnes of CO₂ emissions each year.

Scatec will develop Shadwan through its integrated project delivery model, combining the equity bridge loan from TAEF with cash flows generated through its engineering and construction activities to optimise its equity funding requirements.

Scatec CEO Terje Pilskog said the latest milestones reflect the scale of the company’s renewable energy development plans in Egypt. He added that Shadwan and the Energy Valley project represent a significant step toward building a large-scale renewable energy portfolio in the country.

EDF power solutions CEO Béatrice Buffon said the Shadwan project strengthens the company’s presence in Egypt through its partnership with Scatec. She added that the project will leverage Egypt’s strong wind resources to provide competitive, low-carbon electricity and support the country’s renewable energy ambitions.

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

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

Under the agreements, Scatec will provide Engineering, Procurement and Construction (EPC), Asset Management (AM), and Operations and Maintenance (O&M) services for both projects.

Construction of Shadwan will be carried out in phases, with the first phase expected to reach commercial operation by the end of 2027.