EBRD provides $30 mln for Scatec’s Obelisk solar power project in Egypt

The financing supports Scatec’s newly launched 1.1GW Obelisk solar project in Nagaa Hammadi, which includes a 100MW/200MWh battery energy storage system.

Electricity will be sold under a 25-year US dollar-denominated power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), backed by a sovereign guarantee.

The project will roll out in two phases: the first, comprising 561MW of solar and the whole battery system, is due online in early 2026; the remaining 564MW is expected later that year.

To fund the build, Scatec secured $120 million in equity bridge loans—$90 million from the Arab Energy Fund (maturing in Q2 2028) and $30 million from the EBRD (maturing in Q1 2027).

The financing defers equity injections until construction is complete.

Scatec has also signed a mandate with a consortium of development finance institutions to provide long-term, non-recourse debt.

Financial close is anticipated in the coming months, and talks with potential equity partners are ongoing.

The total investment in the project is estimated at $590 million, around 80 percent of which will be covered by project debt. Scatec will handle engineering, procurement, and construction (EPC), as well as long-term operations and asset management.

The EPC scope, representing roughly 70 percent of the total cost, has been optimized to maintain profitability and reduce capital needs.

“This groundbreaking project is a major milestone in Egypt’s renewable energy ambitions,” said Scatec CEO Terje Pilskog. “It cements our leadership in the region and leverages our strong track record in hybrid solar developments.”

The project will be one of Egypt’s first hybrid renewable energy installations, serving as a pilot for broader adoption of battery-integrated solar.

It is being developed under the energy pillar of Egypt’s Nexus on Water, Food and Energy (NWFE) initiative, launched at COP27, to position the country as a regional renewables hub.

The plant will cut CO₂ emissions by 1.36 million tonnes annually while supporting grid stability and meeting rising electricity demand.

Egypt, a founding EBRD member, has received more than €13.8 billion in investment across 201 projects since 2012, spanning energy, water infrastructure, transport, finance and manufacturing.