Scatec has completed a very large non-recourse project financing deal of $479.1 million. This funding will advance their ambitious 1.1 gigawatt (GW) sized Obelisk solar and battery storage project, located in the Nagaa Hammadi region of Egypt. This important financial milestone is a key step toward achieving the company’s vision of bringing the future of clean energy to Egypt. The $470 million financing amount is about 80% of the total, $590 million estimated capital expenditure for the project.
Scatec plans to reach the commercial operational date for the Obelisk solar project in H1 2026. The project will happen over two exciting phases. The initial phase will utilize 561 megawatts (MW) of solar energy, with 100MW/200 megawatt-hours (MWh) of integrated battery storage. In order to further advance the project’s development, Scatec has closed $120 million equity bridge loans to give additional support for developing projects.
Power Purchase Agreements
As a project developer, Scatec has executed a 25-year PPA with the Egyptian Electricity Transmission Company (EETC). This particular deal was for the Obelisk solar project. During the contract period, the energy produced by the solar facility will be sold at a fixed rate. This deal ensures that the company has a consistent revenue source for the next 15 years.
Scatec already has a 25-year PPA for its record-setting 900MW Shadwan wind power project in Ras Shukeir. This area is known for being among the best places in the world to produce onshore wind power. These agreements solidify Scatec’s commitment to advancing renewable energy projects in Egypt and contribute significantly to the country’s clean energy ambitions.
“We are proud to partner with leading development finance institutions to support Egypt’s clean energy ambitions, and we look forward to delivering this important project together with our partners.” – Scatec
Multiple Projects Under Development
Scatec is currently working on four flagship renewable projects in Egypt. This combined effort, in addition to the Obelisk solar project, presents a very diversified technology base. The second phase of the Obelisk project, once completed, will add another 564MW of solar capacity. We’ll be working to finish this first phase in the second half of 2026. This expansion announcement continues to underscore Scatec’s commitment to improving Egypt’s renewable energy infrastructure.
Scatec’s CEO, Terje Pilskog, looked forward to celebrating reaching financial close for the Obelisk project. At the time, he touted it as “the biggest milestone” for the company. He underscored that this accomplishment shows Scatec’s ability to successfully deliver large-scale hybrid projects.
“Reaching financial close for this project marks a major milestone for Scatec. It proves our ability to deliver large-scale hybrid projects.” – Terje Pilskog