The financing was provided by the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the British International Investment (BII).
The project, developed by Scatec ASA through its subsidiary Obelisk Solar Power SAE, will help stabilize Egypt’s energy grid and reduce reliance on fossil fuels.
This aligns with Egypt’s 2030 renewable energy target of achieving 42 percent renewables in its power mix.
Major international financing support
This financing includes the following:
• EBRD: $173.5 million loan, including $101.9 million covered under the European Fund for Sustainable Development Plus (EFSD+) guarantee and a $6.5 million grant from the EBRD Shareholder Special Fund;
• AfDB: $184.1 million financing package, featuring $125.5 million from ordinary resources, plus $58.6 million concessional funding from AfDB-managed special funds and the CIF’s Clean Technology Fund;
• BII: $100 million concessional loan and $15 million returnable grant to support affordability and private-sector participation.
The financing covers 80 percent of the estimated capital expenditure of $590 million, making it Egypt’s first large-scale integrated solar and battery storage project.
The energy will be sold under a 25-year USD-denominated power purchase agreement with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee.
“It takes Egypt’s green energy transition to another level by harnessing the power of the sun, not just during the day but also at night, thanks to the combination of solar and battery storage," said EBRD Managing Director for Sustainable Infrastructure Harry Boyd-Carpenter.
"The project addresses growing electricity demand, reduces reliance on expensive fossil fuels, and contributes to the goals of Egypt’s Nexus on Water, Food and Energy launched at COP27,” he added.
Meanwhile, the AfDB’s director of Energy Financial Solutions, Policy, and Regulations, Wale Shonibare, emphasized the initiative’s broader impact.
“This project exemplifies the scale of renewable energy potential across Africa and demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development,” he said.
Iain Macaulay, director and head of project finance (Africa and Pakistan) for BII, highlighted the project's strategic significance: “The integration of battery storage with solar PV is a game-changer for Egypt’s energy sector, providing reliable and dispatchable renewable energy while reducing reliance on fossil fuels.”
“This project marks a major milestone for Scatec. It proves our ability to deliver large-scale hybrid projects, and we are proud to support Egypt’s clean energy ambitions alongside our partners,” Terje Pilskog, CEO of Scatec, stated.
Additionally, Stefano Sannino, the European Commission's director-general for the Middle East, North Africa, and the Gulf, praised the collaboration.
“This project is a concrete example of a fruitful EU-EBRD partnership supporting Egypt’s green transition through large-scale investment. The EU guarantee allows the EBRD to provide financing for an innovative solution that attracts private investors,” Sannino said.
Green transition and future impact
Once operational, the facility will produce 3,000 GWh annually, enhancing grid stability and peak demand management while reducing carbon dioxide emissions by up to 1.4 million metric tonnes annually.
The project sets a precedent for future hybrid renewable energy investments, reinforcing Egypt’s long-term commitment to sustainability.
Since 2012, the EBRD has invested over 13.3 billion euros in 202 projects across Egypt, supporting infrastructure, energy, and economic development.
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