Scatec starts work on $590m solar and battery project
7 May 2025
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Norwegian renewable energy firm Scatec has commenced construction on the first phase of its 1.1GW Obelisk solar and 100MW/200MWh battery energy storage project in Egypt.
The firm signed a 25-year power-purchase agreement with Egyptian Electricity Transmission Company (EETC) in September last year. The agreement is US dollar-denominated and sovereign guarantee-backed.
The project will be constructed in two phases, according to Scatec.
The first phase comprises a 561MW solar and 100MW/200MWh battery storage project, which is targeted to reach commercial operation in the first half of 2026.
The second phase comprises a 564MW solar project, which is expected to reach commercial operation in the second half of the same year.
The Oslo-headquartered firm has signed equity bridge loans (EBLs) of $120m for the project, postponing the project equity injections to the end of the construction period.
The Arab Energy Fund will provide a $90m EBL with maturity in the second quarter of 2028, while the European Bank for Reconstruction & Development (EBRD) will provide a further $30m EBL maturing in the first quarter of 2027.
Scatec has further signed a mandate letter with a consortium of development finance institutions for the long-term non-recourse project debt at “attractive terms”, with financial close expected in the next few months.
The company is also in advanced discussions with potential equity partners, expected to conclude in the same timeframe, it added.
Total capex for the project is approximately $590m to be partly financed by a targeted 80% non-recourse long-term project debt.
Scatec will deliver engineering, procurement and construction, asset management, and operations and maintenance services for the project.
The firm said its EPC scope is approximately 70% of total capex, “reduced from previous communication due to optimisation of the EPC structure but with unchanged gross profit to Scatec”.
READ THE MAY 2025 MEED BUSINESS REVIEW – click here to view PDF
Gulf hunkers down as US tariffs let fly; Abu Dhabi looks to secure its long-term economic prosperity; Nesma stays on top as China State moves up in 2025 GCC contractor ranking
Distributed to senior decision-makers in the region and around the world, the May 2025 edition of MEED Business Review includes:
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> AGENDA 1: GCC shelters from the trade wars
> AGENDA 2: Gulf markets slide as US tariff shockwaves hit
> GCC CONTRACTORS: Contractors take on more work in 2025
> INTERVIEW: CCED seeks growth in Oman’s hydrocarbons sector
> INTERVIEW: Roshn outlines its procurement strategy
> LEADERSHIP: Rethinking investments for a lower-carbon future
> GULF PROJECTS INDEX: Gulf projects index inches upwards
> CONTRACT AWARDS: Region records $70.3bn of deal signings in Q1 2025
> ECONOMIC DATA: Data drives regional projects
> OPINION: Trump’s new world order
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Kuwait recorded zero crude exports during April4 May 2026
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Oman’s Barka 5 IWP solar plant begins full operations1 May 2026
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Qiddiya receives high-speed rail PPP prequalifications1 May 2026
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Saudi Arabia’s Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company (QIC) and the National Centre for Privatisation & PPP, received prequalification statements from firms on 30 April for the public-private partnership (PPP) package of the Qiddiya high-speed rail project in Riyadh.
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The prequalification notice was issued on 19 January, and a project briefing session was held on 23 February at Qiddiya Entertainment City.
The Qiddiya high-speed rail project, also known as Q-Express, will connect King Salman International airport and the King Abdullah Financial District (KAFD) with Qiddiya City. The line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.
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In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project. UK-based consultancy Ernst & Young is acting as the transaction adviser, and Ashurst is the legal adviser.
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Bid deadline extensions hint at tighter project market1 May 2026
Commentary
Mark Dowdall
Power & water editorThere has been a steady run of bid deadline extensions across major power and water projects in recent weeks.
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