Scatec starts constructing its latest Egypt project: Scatec has kicked off construction of its USD 590 mn, 1.1 GW Obelisk solar project with 200 MWh of battery energy storage in Nagaa Hammadi, according to a press release issued on Monday. The project — awarded the golden license in December — will be built over two phases, with plans to be fully operational in the second half of 2026.

The details: The first phase will bring 561 MW of solar energy and /200 MWh of battery storage online in the first half of 2026 and the second phase will add another 564 MW of solar power in the second half of 2026. Scatec will also handle engineering, procurement and construction, asset management, and operations & maintenance.

Where’s the money coming from? Scatec signed equity bridge loans worth USD 120 mn for the project and put off the project equity injections until construction is done. The Arab Energy Fund will provide USD 90 mn, while the European Bank for Reconstruction and Development will provide another USD 30 mn.

That’s not all: The energy player also signed a mandate letter for its long-term, non-recourse debt, accounting for 80% of the project’s capex, with a group of development finance institutions. Other discussions are being held with potential equity partners, with financial close for the project expected within the next few months.

Offtake is secured: Scatec signed a USD-denominated, 25-year Power Purchase Agreement with the Egyptian Electricity Transmission Company, which will be backed by a sovereign guarantee.

REMEMBER- The project will be connected to the grid by 220 kV transmission lines built under a contract signed last month between the EETC and a consortium of Kharafi National and Power Ring.

IN OTHER REGIONAL SOLAR NEWS-

#1- Oman’s Manah 2 is operational: Singapore’s Sembcorp Utilities has commenced commercial operations at Oman’s 588 MWp Manah 2 solar power project, according to a press release on Sunday. The company had completed acceptance tests in January, four months ahead of schedule.

About Manah 2: It is one of two plants making up the 1 GW Manah solar development estimated at a total cost of about USD 800 mn. Manah 2 is developed by a JV between Sembcorp Utilities and China’s Jinko Power and is backed by a 20-year power purchase agreement with Oman’s Nama Power and Water Procurement Company.

#2- Morocco advances Noor Atlas solar program: The Moroccan Agency for Sustainable Energy (Masen) received approval to establish a wholly owned subsidiary — Noor Atlas Energy Company — to develop, operate, and maintain the Noor Atlas solar program, according to a decree (pdf) published in the official gazette. The program will include six grid-connected photovoltaic power plants with a total capacity of around 291 MW, and will be rolled out across five regions.

What we know: The program is expected to mobilize MAD 2.8 bn in total investments, financed through two concessional loans from Germany’s KfW and the European Investment Bank, alongside a complementary loan from Moroccan credit institutions. The first phase of the program is expected to be completed within 18 months from the issuance of the service order, with at least two plants required to be finalized within no more than 13 months, Detafour reported on Tuesday.

Masen has also launched a call to select an independent technical advisor, who will oversee the implementation of the program from the design to full operation, Detafour added. The advisor’s role will include reviewing technical studies submitted by executing companies, monitoring on-site progress, and supervising performance tests.

Other Noors for Maroc: Morocco’s 580 MW Noor Ouarzazate III solar power plant resumedoperations last month after a hiatus of over a year. It also prequalified eight consortia to develop the 400 MW third phase of the 1.6 GW Noor Midelt solar complex in the Atlas Mountains in 2023.

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