Scatec ASA and the European Bank for Reconstruction and Development (EBRD) have signed a share purchase agreement to establish a renewable energy investment platform in Egypt. The platform aims to accelerate the development and financing of renewable energy projects in the country, supporting Egypt’s energy transition and strengthening its energy security.
Under the agreement, Scatec will hold a 60% stake in the platform, while EBRD will own the remaining 40%. EBRD has committed up to USD 221 million to support the platform, including approximately USD 170 million in equity investment and the remaining amount through project-level guarantees. The investment is expected to provide long-term capital for Scatec’s renewable energy portfolio in Egypt.
The platform will primarily focus on financing and developing Scatec’s near-term renewable energy projects. Its expected portfolio includes a 40% equity interest in the Obelisk project and a 51% stake in Shadwan. It will also hold approximately 60% equity interests in the first phase of the Egypt Aluminium project, known as Dandara, and the Energy Valley project. These investments will be made alongside other minority co-investors.
Over time, the platform may expand its activities beyond Egypt to explore additional renewable energy investment opportunities across the broader Middle East and North Africa (MENA) region.
Scatec CEO Terje Pilskog said Egypt has become one of the company’s most important markets. He noted that the partnership with EBRD would bring institutional capital and a long-term investment commitment, helping accelerate the company’s regional growth plans and support the development of its project portfolio.
Harry Boyd-Carpenter, Managing Director of Sustainable Infrastructure at EBRD, said the investment would strengthen Egypt’s energy security by expanding access to reliable renewable energy. He added that the partnership would help address the country’s energy challenges while reducing dependence on imported fossil fuels.
The investment platform reflects Scatec’s strategy of partnering with long-term institutional investors to expand renewable energy investments in markets with favourable growth prospects. It is also expected to improve capital efficiency by allowing the company to recycle capital into new projects.
The platform will operate through a holding vehicle jointly owned by Scatec and EBRD. Scatec will continue to serve as the lead sponsor, developer, engineering, procurement and construction (EPC) provider, and asset manager for the projects. The partnership is expected to combine Scatec’s project development and execution capabilities with EBRD’s financing capacity and regional expertise, creating a potential model for renewable energy investment across selected markets in the region.
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