Scatec breaks ground on 1.1 GW solar, battery project in Egypt

Norwegian renewables company Scatec ASA (OSL:SCATC) has begun the construction of the 1.1-GW Obelisk solar project with an integrated 100 MW/200 MWh battery storage in Egypt and is in talks with potential equity partners.

This progress follows the signing of USD 120 million (EUR 105.8m) in equity bridge loans, which will support construction of the project with a total estimated capital expenditure of around USD 590 million, the developer said on Monday.

The Arab Energy Fund will provide a USD 90 million loan maturing in the second quarter of 2028, and the European Bank for Reconstruction and Development (EBRD) will add another USD 30 million loan, due in the first quarter of 2027. These loans will allow Scatec to delay its equity investments in the project until the end of the construction phase.

In addition, Scatec has reached an agreement with a group of development finance institutions to move forward with long-term, non-recourse project financing under competitive terms. This step is expected to help finalise the financing in the coming months.

Discussions with potential equity partners should be completed within the next few months.

The project will be built in two parts. The first part, which includes 561 MW of solar power and a 100 MW/200 MWh battery, is expected to be up and running in the first half of 2026. The second part, adding another 564 MW of solar, should be ready in the second half of the same year. The energy produced at the site will be supplied to the Egyptian Electricity Transmission Company (EETC) under a 25-year deal.

The Nordic developer will be in charge of engineering, procurement and construction (EPC), asset management, and operations and maintenance.