Inside the financing of Egypt’s largest solar‑plus‑storage project
AI Analysis
Summary
Norwegian developer Scatec ASA has commissioned the first phase of the 1.1 GW Obelisk solar and battery energy storage system (BESS) project in Egypt, backed by $479.1 million in development finance institution (DFI) debt and a fully contracted storage revenue model.
<p class="p1"><span class="s1">Norwegian developer Scatec ASA has commissioned the first phase of the 1.1 GW Obelisk solar and battery energy storage system (BESS) project in Egypt, backed by $479.1 million in development finance institution (DFI) debt and a fully contracted storage revenue model.</span></p><p>Scatec ASA has brought its largest project to date into operation in Egypt with a capital structure combining multilateral development bank debt, layered equity from a Norwegian climate fund and a French energy company, and a power purchase agreement (PPA) that fully contracts BESS dispatch with no merchant exposure.</p>
<p>The $590 million Obelisk project in Nagaa Hammadi, Upper Egypt, is financed with more than 80% non-recourse debt – $479.1 million – provided by the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and British International Investment (BII).</p>
<p>Norfund, through Norway's Climate Investment Fund, holds 25% of the Obelisk holding company, with Scatec retaining 75%. EDF Power Solutions holds 20% of the operating company below, leaving Scatec with 60% total economic interest and operational control, Norfund with 20%, and EDF Power Solutions with 20%, a Scatec spokesperson told <strong>pv magazine</strong>.</p>
<p>“The main difference is equity partners were invited at two levels – SPV and HoldCo,” said the spokesperson. “This reduces Scatec's equity need while retaining majority control throughout the structure.”</p>
<p>To complement this dual-level approach, the company maintains a consistent framework for how and when external investors are introduced across its portfolio.</p>
<p>Equity partners are brought into all projects, typically before financial close, with non-recourse debt covering the majority of Capex and a baseline 20/80 equity-to-debt split that varies by country and offtake terms, said the Scatec spokesperson.</p>
<p>“The Obelisk project is a good example of how the Climate Investment Fund can help accelerate the transition from fossil to renewable energy in emerging markets through profitable investments,” said Bjørnar Baugerud, head of Norway's Climate Investment Fund.</p>
<p>The first phase – <a href="https://www.pv-magazine.com/2026/01/12/scatec-secures-ppa-for-africas-largest-solar-plus-storage-project/" rel="noopener" target="_blank">561 MW of solar and a 100 MW/200 MWh battery energy storage system</a> – was commissioned in February 2026.</p>
<p>The BESS dispatch is fully contracted under the 25-year, US dollar-denominated PPA with Egyptian Electricity Transmission Co. (EETC), with no merchant or ancillary services exposure, said the Scatec spokesperson. The PPA is backed by a sovereign guarantee. The second phase adds another 564 MW of solar and is targeted for commercial operation in summer 2026.</p>
<p>Scatec reported NOK 11 billion ($1.17 billion) in proportional revenues for 2025, NOK 4.568 billion in EBITDA, a 25% reduction in gross corporate debt, and NOK 5.6 billion in liquidity at year end, according to its full-year 2025 results.</p>
<p>Equinor sold an 8.07% stake in Scatec this week at NOK 125 per share, raising approximately NOK 1.6 billion, and retained a roughly equal remaining stake subject to a 90-day lock-up. Equinor, which built its holding to 16.12% between 2019 and 2023, described the sale as portfolio optimization.</p>