Scatec ASA has officially commenced construction on its landmark 1.1 GW Obelisk solar power project in Egypt, which includes an integrated 100 MW/200 MWh battery energy storage system. The renewable energy generated will be sold under a 25-year, USD-denominated Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), backed by a sovereign guarantee.
The project will be developed in two phases. The first phase—comprising 561 MW of solar capacity alongside the battery storage system—is scheduled to come online in the first half of 2026. The second phase, adding 564 MW of additional solar capacity, is expected to become operational in the second half of 2026.
To support construction, Scatec has secured $120 million in equity bridge loans (EBLs), allowing the deferral of equity contributions until completion. The Arab Energy Fund will provide $90 million in EBL financing maturing in Q2 2028, while the European Bank for Reconstruction and Development (EBRD) will contribute $30 million, maturing in Q1 2027.
“We are proud to break ground on Egypt’s first hybrid solar and battery storage project,” said Scatec CEO Terje Pilskog. “This milestone builds on our track record in the region and reinforces Scatec’s leadership in supporting Egypt’s ambitious renewable energy goals.”
In parallel, Scatec has signed a mandate letter with a consortium of development finance institutions to arrange long-term, non-recourse project financing. Financial close is expected in the coming months. The company is also in advanced discussions with potential equity partners, with agreements anticipated in the same timeframe.
