Norway-based renewable energy company Scatec ASA has announced the financial close for its landmark Obelisk hybrid solar and battery storage project in Nagaa Hammadi, Qena governorate, Egypt. The development marks a major milestone for the country’s clean energy transition, being the first utility-scale solar and Battery Energy Storage System (BESS) project of its kind in Egypt.
The project, estimated at USD 590 million, has secured USD 479.1 million in non-recourse financing from major international financial institutions, including the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment (BII). The debt covers nearly 80 percent of the capital expenditure.
“We are proud to partner with leading development finance institutions to support Egypt’s clean energy ambitions,” said Scatec CEO Terje Pilskog. “This is an important project, not just for Scatec, but for the region’s energy transition.”
Phased Development and Strategic Partnerships
Construction for the Obelisk project began in May 2025 and will be rolled out in two phases. The first phase includes 561 MW of solar capacity and a 100 MW/200 MWh battery storage unit, with commercial operations expected in the first half of 2026. The second phase will add another 564 MW of solar generation, targeted for the second half of 2026.
The project is backed by a 25-year USD-denominated Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), and supported by a sovereign guarantee.
In addition to construction, Scatec will also provide EPC, Asset Management, and O&M services. About 70 percent of the total project cost is tied to EPC work.
This hybrid project is part of Egypt’s broader Nexus of Water, Food and Energy (NWFE) platform, which aims to deliver 10 GW of renewable energy by 2030. Under this program, the Obelisk project received a Golden License, recognising its strategic importance.
Scatec is also in advanced talks with equity partners and has already signed USD 120 million in equity bridge loans, deferring equity injections until the construction phase ends.
