Scatec ASA has officially started building its 1.1 GW Obelisk solar power facility paired with a 100 MW/200 MWh battery energy storage system in Egypt. The project will sell electricity under a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), backed by a sovereign guarantee and priced in U.S. dollars.
The development will proceed in two stages. The initial phase, comprising 561 MW of solar capacity and the battery system, is expected to become operational in the first half of 2026. The second stage, which will add 564 MW of solar power, is scheduled to go live in the latter half of the same year.
To ease early financing, Scatec has secured equity bridge loans totaling USD 120 million, deferring equity contributions until construction concludes. The Arab Energy Fund will provide USD 90 million, maturing in Q2 2028, while the European Bank for Reconstruction and Development (EBRD) will lend USD 30 million, maturing in Q1 2027.
Scatec has also signed a mandate with a group of development finance institutions to arrange long-term project debt on favorable terms, aiming to reach financial close in the coming months. In parallel, the company is finalizing negotiations with potential equity partners.
CEO Terje Pilskog expressed pride in launching Egypt’s first hybrid solar and battery project, highlighting the company’s expertise and commitment to supporting the country’s renewable energy targets. He noted that this milestone reinforces Scatec’s leadership in Egypt’s green energy sector.
The total project cost stands at around USD 590 million, with plans to finance roughly 80% through non-recourse, long-term debt. Scatec will oversee Engineering, Procurement and Construction (EPC), as well as manage and maintain the project post-completion. The EPC portion represents about 70% of the total cost, reduced through structural optimization while maintaining Scatec’s projected profit margins.
source: fuelcellsworks.com
African Energy Council