Scatec ASA has officially commenced construction on its 1.1 GW Obelisk Solar PV and BESS project in Egypt. The BESS will have a capacity of 100 MW/200 MWh . The electricity generated from the entire project will be sold under a 25-year, USD-denominated Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), secured by a sovereign guarantee.
The energy project is expected to be developed in two phases. The first phase will consist of 561 MW of solar capacity along with the 100 MW/200 MWh battery system. It is scheduled to become operational in the first half of 2026. Also, as for the second phase it is expected to have 564 MW of solar capacity and is projected to reach commercial operations in the second half of the year 2026.
Obelisk Solar PV and BESS Project Factsheet
Project name: Obelisk Solar PV and BESS
Developer: Obelisk Solar Power, a Special Purpose Vehicle (SPV) wholly owned by Scatec ASA.
Location: Nagaa Hammadi, Qena Governorate, Egypt.
Capacity:
Solar PV plant: 1.1 GWac (Gigawatts alternating current)
Battery Energy Storage System (BESS): 100 MW / 200 MWh (Megawatts / Megawatt-hours).
Development phases: The project will be constructed in two phases:
- Phase 1: 561 MW solar + 100 MW/200 MWh battery storage. Targeted Commercial Operation Date (COD) is the first half of 2026.
- Phase 2: 564 MW solar. Targeted Commercial Operation Date (COD) is the second half of 2026.
Financing:
- The European Bank for Reconstruction and Development (EBRD) is considering providing financing.
- Also, Equity bridge loans totaling $120 million have been secured to support the project’s financing during construction. Additionally, just to note, this includes $90 million from the Arab Energy Fund and $30 million from the EBRD.
Also read: Egypt’s 650MW GOS II Wind Farm Project Complete, with EWA Group Playing Crucial Logistics Role
Significance:
- To enhance the reliability of solar power generation in Egypt through the integration of battery storage.
- To support Egypt in meeting its renewable energy targets.
- Lastly, it introduces one of the first utility-scale Battery Energy Storage Systems in Egypt, paving the way for future similar projects.
Key dates:
- Concept Reviewed (EBRD): February 27, 2025 (Project ID 55308), December 11, 2024 (Project ID 55885).
- Construction commencement: May 5, 2025.
- Phase 1 commercial operation date: First half of 2026.
- Phase 2 commercial operation date: Second half of 2026.
- Lastly, the project deadline has been set at December 31, 2025.
Estimated cost: USD 120 Million (This could be a specific financing tranche or an earlier estimate).
Also read: Construction of Africa’s Largest Solar PV and First Utility-Scale BESS in Egypt
Project’s Funding
Also, in order to support the funding of the project, Scatec has already secured USD 120 million in equity bridge loans (EBLs), deferring equity contributions until the end of the project’s construction.
Additionally, the Arab Energy Fund is expected to provide $90 million EBL that will mature in Q2 2028. Furthermore, European Bank for Reconstruction and Development (EBRD) will contribute $30 million that will mature in Q1 2027.
A Boost for Scatec’s Portfolio
“Also, we are proud to break ground on Egypt’s first hybrid solar and battery project. This energy project builds on our portfolio in regards to similar developments. Furthermore, Egypt has set ambitious targets to build out significant renewable energy capacity the coming years. Additionally, the implementation of this milestone further strengthens Scatec’s position as a leading renewable energy producer in the country,” said Scatec CEO Terje Pilskog
Lastly, Scatec has signed a mandate letter with a consortium of development finance institutions that will enable them to secure long-term, non-recourse project financing on favorable terms, with financial close expected in the coming months. Also, rospective equity partners are actively engaged in discussions, which are well advanced and expected to conclude within the same period.
Also read: IRSC Signs agreement with ACO, Sungrow, and Tongwei for Egypt’s 75 MW Solar Projects
