Scatec ASA Secures Funding for “Obelisk” Solar and Battery Storage Project in Egypt
Exciting news is coming out of Egypt as Scatec ASA hits a major milestone with the financial close of its “Obelisk” hybrid solar and battery storage project. This landmark venture is set to make waves in the renewable energy sector, marking a pivotal step forward for sustainable energy in Africa.
With a robust financing package of 9.1 million, secured through reputable institutions such as the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment (BII), this project is not just a win for Scatec, but also for Egypt’s ambitious energy goals. The financing encompasses nearly 80% of the total estimated capital expenditure (capex) of 0 million. This innovative solution aims to tackle the growing energy demands while ensuring a greener future.
The project will unfold in two key phases. The initial phase will feature 561 MW of solar power combined with 100 MW/200 MWh battery storage, slated to commence commercial operations in the first half of 2026. Following that, the second phase will add another 564 MW of solar energy by the latter half of the same year. Under a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), this clean energy will significantly contribute to Egypt’s energy landscape, backed by a sovereign guarantee.
Adding to its commitment, Scatec has already entered into equity bridge loans (EBLs) valued at 0 million for the “Obelisk” project, skillfully postponing equity injections until construction wraps up. The company is also on the cusp of finalizing discussions with potential equity partners, anticipated to finalize shortly.
What’s noteworthy is that Scatec will not just be a financier but will also provide comprehensive Engineering, Procurement, and Construction (EPC) services, along with Asset Management and Operations & Maintenance (O&M) for the project. Their EPC responsibilities account for a substantial 70% of the project’s total capex, highlighting their integral role in this initiative.
This remarkable advancement in renewable energy symbolizes Egypt’s commitment to sustainable development and an increased focus on transitioning towards clean energy. As nations worldwide strive to meet energy demands responsibly, projects like the “Obelisk” embody hope for a greener future.
Keep an eye on Egypt and Scatec ASA; they are shaping the future of energy, not just regionally, but perhaps globally as well.
Tags: #Egypt #WorldNews #BusinessNews #Lifestyle
