Scatec Initiates $590 Million Solar Project in Egypt with Energy Storage

CAIRO - 7 May 2025:  Scatec has officially launched the construction of its $590 million, 1.1 GW Obelisk solar project in Nagaa Hammadi, Egypt, which will also include 200 MWh of battery storage. The project, which is planned in two phases, is expected to be fully operational by the second half of 2026.

The first phase will introduce 561 MW of solar capacity and 200 MWh of battery storage by mid-2026, while the second phase will add another 564 MW of solar power later that year.

The Obelisk project will be connected to Egypt's national grid through 220 kV transmission lines, with a construction contract signed last month between the Egyptian Electricity Transmission Company (EETC) and a consortium that includes Kharafi National and Power Ring.

In December 2024, the project was granted a golden license, a significant step in its development.

To fund the initiative, Scatec has secured $120 million in equity bridge loans, with the project’s equity injections deferred until the completion of construction. The Arab Energy Fund will contribute $90 million, and the European Bank for Reconstruction and Development (EBRD) will add $30 million.

Additionally, Scatec has entered into a mandate for long-term, non-recourse debt, covering 80 percent of the project’s total capital expenditure, sourced from a group of development finance institutions.

Scatec has also secured a Power Purchase Agreement (PPA) with the EETC, a 25-year USD-denominated contract backed by a sovereign guarantee, ensuring the project’s financial viability for decades to come.