Scatec ASA, a renewable energy solutions provider, has started construction on its 1.1 GW Obelisk solar and 100 MW/200 MWh battery storage project in Egypt.
According to the company, the energy would be supplied to the Egyptian Electricity Transmission company via a 25-year Power Purchase Agreement in US dollars, which is backed by a sovereign guarantee.
The project will be built in two phases.
The first phase of 561 MW solar + 100 MW/200 MWh battery storage is expected to be commercially operational in the first half of 2026, with the second phase of 564 MW solar following in the second half of 2026, according to the business.
Furthermore, Scatec said it has secured $120 million in equity bridge loans (EBL) for the project, postponing project equity injections until the completion of the construction phase.
The Arab Energy Fund will give a $90 million EBL with a maturity date of the second quarter of 2028, while the European Bank for Reconstruction and Development will provide another $30 million EBL with a maturity date of the first quarter of 2027.
Scatec also said it signed a mandate letter with a consortium of development finance institutions for long-term non-recourse project loan at favourable terms, with a financial close expected in the coming months.
In addition, the company said it is also in advanced discussions with potential equity partners, expected to conclude in the same timeframe.
Scatec CEO Terje Pilskog stated that the business was pleased to break ground on Egypt’s first hybrid solar and battery project.
He added: “Egypt has ambitious targets to build out significant renewable energy capacity the coming years.”
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