EBRD, AfDB & BII Back Egypt’s 1.1 GW Solar and Battery Storage Project
The European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment
(BII) have committed a total of $ 479.1 million to Obelisk Solar Power SAE, a special-purpose vehicle owned by Scatec ASA, to support the development of Egypt’s first-ever utility-scale solar photovoltaic (PV) power plant integrated with a battery energy storage system (BESS).
This 1.1 GW project, located in the Nagaa Hammadi region, is set to make a significant contribution to Egypt's renewable energy infrastructure.
Project Financing and Structure
The financing package includes US$ 173.5 million from the EBRD, with US$ 101.9 million benefiting from the European Fund for Sustainable Development (EFSD+) first-loss cover guarantee.
The AfDB is contributing US$ 184.1 million, with a combination of ordinary resources and concessional funding from several special funds. BII is providing a $ 100 million concessional loan and a US$ 15 million returnable grant aimed at reducing the cost of the BESS component.
This hybrid financing arrangement accounts for around 80% of the projected US$ 590 million total capital cost of the project, which will be built in two stages. The initial phase, with 561 MW solar and 100 MW/200 MWh of battery storage, is due to come on stream mid-2026. The second phase, with 564 MW of solar, will follow later in the year.
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A Major Milestone in Egypt’s Renewable Energy Agenda
This project is one of Egypt's measures to achieve its ambitious renewable energy targets, including 42% renewables in the power mix by 2030. The plant will inject about 3,000 GWh of renewable energy annually once it's built, providing grid stability and meeting peak demand.
Iain Macaulay, Director and Head of Project Finance at BII said, “This project underscores BII’s commitment to innovative and sustainable energy solutions. The integration of battery storage with solar PV is a game-changer for Egypt’s energy sector, providing reliable and dispatchable renewable energy and reducing reliance on fossil fuels. It not only meets Egypt’s current energy needs but also sets a precedent for future dispatchable hybrid renewable energy projects in the region.”.
Terje Pilskog, CEO of Scatec, expressed pride in the company’s role, saying, “This project marks a major milestone for Scatec, showing our ability to deliver large-scale hybrid projects. We are excited to partner with leading development finance institutions to support Egypt’s clean energy ambitions.”
The project is expected to generate significant economic benefits, including $73 million in direct economic impact over the first 20 years of operations. In addition, it will help Egypt reduce carbon dioxide emissions by up to 1.4 million metric tonnes annually. The project will also provide key revenue streams for local communities and is expected to create jobs during construction and operations.
