Norwegian renewable energy giant, Scatec ASA, has announced that it has signed a Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) regarding the Obelisk hybrid solar project.
In a statement by Scatec, the company also noted that it has secured $479 million in financing for the Obelisk hybrid solar project in Egypt.
The hybrid project combines a 1.1 gigawatt (GW) solar plant with a 100 megawatt (MW) / 200 megawatt-hour (MWh) Battery Energy Storage System (BESS) in Egypt.
The total estimated cost for the project is $590 million, approximately 80% of which will be financed by non-recourse debt amounting to $479.1 million.
“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.
The funding comes from the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment (BII).
The AfDB is funding the project with $184.1 million.
The project will be constructed in two phases. The first phase of 561 MW solar plus 100 MW/200 MWh battery storage is targeted to reach commercial operational date (COD) in the first half of 2026.
The second phase of 564 MW solar 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 (EETC), backed by a sovereign guarantee.
Egypt signs PPA with Scatec for Shadwan Wind Project
In addition, Scatec ASA has also signed a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for a 900 MW wind project, through its dedicated project company Shadwan Wind Power SAE, to accelerate Egypt’s transition towards a greener and more sustainable energy mix.
“This project is a testament to Scatec’s position as one of the leading renewables companies in Egypt. We are now advancing four major renewables projects in the country, with a diversified technology base”, Scatec CEO Terje Pilskog said.
The project will be located in the Ras Shukeir region of Egypt, which has high potential for onshore wind power.
“The signing of the PPA will be followed by wind measurements on the site, to be finalised in the first half of 2026, before the project is further advanced towards financial close and construction”, Scatec said in a statement.
