Scatec Achieves Financial Closure for a Groundbreaking Project
Scatec ASA has recently achieved a significant financial milestone with the financial closure of the "Obelisk" hybrid solar project. This innovative project, which also integrates a large-scale battery storage system, is aimed at supporting Egypt's transition towards cleaner energy solutions.
Details of the Project Financing
The project has garnered an impressive USD 479.1 million in non-recourse project financing. This funding has been sourced from esteemed financial institutions including the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment (BII). Notably, this financing represents around 80% of the estimated total capital expenditure, which is approximately USD 590 million.
Project Phases and Expected Outcomes
The development of the Obelisk project will occur in two distinct phases. The initial phase will feature 561 MW of solar power alongside a 100 MW/200 MWh battery storage system, which is expected to commence operations in the first half of the upcoming year. The second phase aims to add another 564 MW of solar capacity, anticipated to go live in the latter half of the same year. Energy generated will be sold under a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), ensuring a stable and predictable revenue stream for the project's duration.
Scatec's Role in the Project
In addition to securing financing, Scatec has also taken significant steps towards executing the project efficiently. They have previously arranged equity bridge loans amounting to USD 120 million, allowing for delayed equity injections until the project's construction is complete. Furthermore, Scatec is actively seeking potential equity partners to collaborate on this venture, which is expected to finalize soon.
Engineering and Construction Management
Scatec will oversee key aspects of the Obelisk project's execution, including Engineering, Procurement, and Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services. With the EPC scope comprising approximately 70% of the project's total capex, this role underscores Scatec's commitment to delivering high-quality and reliable renewable energy infrastructure.
About Scatec
Scatec stands as a frontrunner in the renewable energy sector, dedicated to increasing access to affordable and reliable clean energy worldwide. With a portfolio of 6.2 GW of renewable energy projects either operational or under construction across five continents, Scatec continues to drive the global clean energy agenda. The company is headquartered in Oslo and operates under the ticker symbol ‘SCATC’ on the Oslo Stock Exchange.
Frequently Asked Questions
What is the Obelisk project?
The Obelisk project is a hybrid solar and battery storage initiative located in Egypt, aiming to enhance the country's renewable energy capacity.
Who financed the Obelisk project?
The project received USD 479.1 million in financing from the EBRD, AfDB, and BII.
What are the phases of the Obelisk project?
The project consists of two phases, with the first phase featuring 561 MW of solar power and battery storage, and the second phase adding 564 MW of solar capacity.
When is the project expected to begin operations?
The first phase is targeted to begin operations in the first half of the coming year, while the second phase is anticipated to start in the latter half of the year.
What is Scatec's role in the project?
Scatec will handle the Engineering, Procurement, and Construction as well as Asset Management and Operations & Maintenance services for the project.
