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Scatec starts constructing 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. The project will be built over two phases and will 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.
ICYMI- The project was awarded the golden license last December.
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 (EETC), which will be backed by a sovereign guarantee.
A first for Egypt: “We are proud to break ground on Egypt’s first hybrid solar and battery project, building on our proven track record with similar developments. Egypt has ambitious targets to build out significant renewable energy capacity the coming years, and this milestone further strengthens Scatec’s position as a leading renewable energy producer in the country,” Scatec CEO Terje Pilskog said,
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.
