Scatec has officially begun construction on its $590 million, 1.1 GW Obelisk solar project in Nagaa Hammadi, which will include 200 MWh of battery energy storage, as announced in a Company’s recent press release. The project, set to be completed in two phases, is expected to be fully operational by the second half of 2026.

In detail, the first phase will bring 561 MW of solar capacity and 200 MWh of battery storage online by the first half of 2026. The second phase will add another 564 MW of solar power by the second half of the same year.

The project will be connected to the national grid through 220 kV transmission lines, with a contract for their construction signed last month between EETC and a consortium including Kharafi National and Power Ring.

Notably, the project was awarded a golden license in December 2024.

Funding for the project will come from a combination of sources, with Scatec securing equity bridge loans of $120 million and deferring project equity injections until construction is completed. The Arab Energy Fund will contribute $90 million, while the European Bank for Reconstruction and Development (EBRD) will provide an additional $30 million.

In addition to the equity financing, Scatec has signed a mandate letter for long-term, non-recourse debt, covering 80% of the project's capital expenditure, with a group of development finance institutions.

The Power Purchase Agreement (PPA) has already been secured, with Scatec entering into a USD-denominated, 25-year agreement with the Egyptian Electricity Transmission Company (EETC), backed by a sovereign guarantee.