Scatec, a renewable energy solutions provider, has secured $479.1 million of non-recourse project financing to develop the Obelisk hybrid solar and battery storage project located in Egypt.
The funding, which corresponds to approximately 80% of the total estimated capital expenditure (capex) of $590 million, was provided by the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and British International Investment (BII).
The project, which has a total capacity of 1.1 GW Solar and 100 MW/200 MWh battery energy storage, will be constructed in two phases. The first phase consists of a 561 MW solar + 100 MW/200 MWh battery storage system and is expected to reach commercial operational date in the first half of 2026.
The second phase consists of a 564 MW solar project and is expected to start in the second half of 2026. The energy will be sold under a USD-denominated 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee.
“Reaching financial close for this project marks a major milestone for Scatec. It proves our ability to deliver large-scale hybrid projects. We are proud to partner with leading development finance institutions to support Egypt’s clean energy ambitions, and we look forward to delivering this important project together with our partners,” says Scatec CEO Terje Pilskog.
Scatec will deliver EPC, Asset Management, and O&M services for the project. Scatec’s EPC scope is approximately 70% of the total capex.
Scatec has previously secured equity bridge loans of $120 million for the project, postponing the project’s equity injections until the end of the construction period.
Last year, the company announced financial closure for the 103 MW/ 412 MWh Mogobe battery energy storage system located in South Africa, with an estimated total capex of ZAR 3 billion (~$170 million).
According to Mercom’s Q1 2025 Solar Funding and M&A report, announced large-scale solar project funding increased by 27% in Q1 2025 compared to Q1 2024.
Last week, rPlus Energies, a solar and energy storage project developer, secured over $500 million in tax equity funding commitments to support the development and construction of the Green River Energy project in Emery County, Utah.
