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.
Scatec ASA has commissioned its largest project to date in Egypt with a capital structure that combines multilateral development bank debt with tiered equity from a Norwegian climate fund and a French energy company, and a power purchase agreement (PPA) that fully contracts the BESS dispatch without exposure to vendors.
The $590 million Obelisk project in Nagaa Hammadi, Upper Egypt, is being financed with more than 80% non-recourse debt – $479.1 million – sourced from the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB) and British International Investment (BII).
Norfund, through the Norwegian Climate Investment Fund, owns 25% of the Obelisk holding, while Scatec owns 75%. EDF Power Solutions owns 20% of the operating company below, giving Scatec a total economic interest and operational control of 60%, Norfund 20% and EDF Power Solutions 20%, a Scatec spokesperson said. pv magazine.
“The key difference is that equity partners were invited at two levels: SPV and HoldCo,” the spokesperson said. “This reduces Scatec’s need for equity, while maintaining majority control throughout the structure.”
Complementing this two-tiered approach, the company maintains a consistent framework for how and when external investors are introduced into its portfolio.
All projects involve equity partners, typically before financial close, with non-recourse debt covering the majority of capex and a basic 20/80 split between equity and debt that varies by country and offtake terms, the Scatec spokesperson said.
“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 the Norwegian Climate Investment Fund.
The first phase – 561 MW of solar energy and a 100 MW/200 MWh battery energy storage system – was commissioned in February 2026.
The BESS transmission is fully contracted under the 25-year US dollar-denominated PPA with Egyptian Electricity Transmission Co. (EETC), without exposure to traders or support services, the Scatec spokesperson said. The PPA is backed by a state guarantee. The second phase will add another 564 MW of solar energy and is targeted for commercial operation in summer 2026.
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 year-end liquidity, according to its full-year 2025 results.
Equinor this week sold an 8.07% stake in Scatec for NOK 125 per share, raising around NOK 1.6 billion, and retained a roughly equal remaining stake, subject to a 90-day lock-up. Equinor, which increased its stake to 16.12% between 2019 and 2023, described the sale as portfolio optimization.
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