Scatec starts construction of large scale solar and battery storage project in Egypt

Core Insights - Scatec ASA has initiated the construction of a 1.1 GW solar and 100 MW/200 MWh battery storage project in Egypt, with energy sales secured under a 25-year Power Purchase Agreement (PPA) backed by a sovereign guarantee [1][5] Project Details - The project will be executed in two phases: the first phase includes 561 MW of solar and 100 MW/200 MWh battery storage, expected to reach commercial operational date (COD) in the first half of 2026, while the second phase consists of 564 MW of solar, targeted for the second half of 2026 [2] - The total capital expenditure (capex) for the project is approximately USD 590 million, with plans to finance 80% through non-recourse long-term project debt [6] Financing Structure - Scatec has secured equity bridge loans (EBL) totaling USD 120 million, with USD 90 million from The Arab Energy Fund maturing in Q2 2028 and USD 30 million from the European Bank for Reconstruction and Development (EBRD) maturing in Q1 2027 [3] - A mandate letter has been signed with a consortium of development finance institutions for long-term non-recourse project debt, with financial close anticipated in the coming months [4] Company Positioning - Scatec's CEO, Terje Pilskog, emphasized the significance of this project as Egypt's first hybrid solar and battery initiative, reinforcing Scatec's role as a leading renewable energy producer in the region [5] - The company is committed to expanding its renewable energy capacity, currently operating and constructing 6.2 GW across five continents [7]