The solar project will be constructed in two phases. Credit: Scatec.

Renewable energy solutions provider Scatec has reached financial close for its Obelisk hybrid solar and battery storage project in Egypt, which is to be delivered in two phases.

Scatec will provide engineering, procurement and construction (EPC), asset management (AM), and operations and maintenance (O&M) services for the Obelisk project, with the EPC scope accounting for roughly 70% of the total capex.

The non-recourse project financing includes $479.1m provided by the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment (BII).

The amount covers approximately 80% of the total estimated capital expenditure of $590m.

Scatec CEO Terje Pilskog said: “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.”

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The project’s first phase comprises 561MW of solar power and 100MW/200MWh of battery storage. It is expected to reach commercial operational date (COD) in the first half of 2026.

The second phase will add another 564MW of solar capacity in the latter half of the same year.

Under a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), the generated energy will be sold in US dollars and is backed by a sovereign guarantee.

Scatec previously secured equity bridge loans (EBL) totalling $120m for the project, which allows for the postponement of project equity injections until the end of the construction period.

Furthermore, the company is in advanced talks with potential equity partners, with the expectation that these discussions will conclude in the coming months.