Scatec ASA has commenced construction of the Obelisk renewable energy project in Egypt, a milestone development combining 1.1 GW of solar capacity with 100 MW/200 MWh of battery energy storage.
The facility is being developed in two phases, with the first comprising 561 MW of solar and the full battery system expected to become operational in the first half of 2026. The second phase, adding a further 564 MW of solar capacity, is scheduled for commissioning in the latter half of the same year.
The electricity generated will be sold to the Egyptian Electricity Transmission Company (EETC) under a 25-year power purchase agreement (PPA), denominated in U.S. dollars and backed by a sovereign guarantee. This structure offers long-term revenue security and aligns with Egypt’s broader ambitions to scale up renewable energy investments.
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Project financing
To support project financing, Scatec has secured equity bridge loans totaling US $120M. The Arab Energy Fund will provide US $90M maturing in Q2 2028, while the European Bank for Reconstruction and Development (EBRD) will contribute US $30M maturing in Q1 2027. These instruments allow Scatec to defer equity injections until construction concludes. Additionally, the company has signed a mandate letter with a consortium of development finance institutions for long-term non-recourse debt, with financial close expected in the coming months.
The total capital expenditure for the project is estimated at US $590M. Scatec targets approximately 80% of this to be financed through long-term project debt. The company will also deliver engineering, procurement, and construction (EPC) services for the project, along with asset management and operations and maintenance support. While the EPC scope has been streamlined, Scatec’s projected gross profit remains unaffected.
Scatec CEO Terje Pilskog emphasized the strategic importance of the project, stating that it strengthens the company’s position in Egypt while supporting the nation’s renewable energy objectives. The Obelisk project is set to become a benchmark for hybrid energy developments across the region.