Scatec ASA has officially commenced construction of the 1.1 GW Obelisk solar power plant in Egypt, which includes a 100 MW/200 MWh battery energy storage system.
Electricity generated from the project will be sold under a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), backed by a sovereign guarantee and priced in U.S. dollars.
The project will be developed in two phases. The first stage, featuring 561 MW of solar capacity and the battery system, is expected to be operational in the first half of 2026.
The second phase, which adds 564 MW of solar capacity, is scheduled for completion in the latter half of 2026.
To support early-stage financing, Scatec has secured $120 million in equity bridge loans, deferring its equity contributions until construction is complete.
The Arab Energy Fund will provide $90 million maturing in Q2 2028, while the European Bank for Reconstruction and Development (EBRD) will contribute $30 million maturing in Q1 2027.
Scatec has also mandated a consortium of development finance institutions to arrange long-term project financing and expects to reach financial close in the coming months. Simultaneously, it is finalizing talks with potential equity partners.
CEO Terje Pilskog expressed pride in initiating Egypt’s first hybrid solar and battery storage project, emphasizing the company’s commitment to supporting the country’s renewable energy goals. He said the milestone underscores Scatec’s leadership in Egypt’s green energy transition.
The total project cost is estimated at $590 million, with about 80% expected to be financed through non-recourse, long-term debt.
Scatec will lead the Engineering, Procurement, and Construction (EPC) efforts and manage the project after completion.
The EPC portion, which accounts for approximately 70% of the total cost, has been optimized to reduce expenses while maintaining the company’s profit margins.
