Renewable energy company Scatec ASA has commenced construction of a 1.1 GW solar project with 100 MW/200 MWh of accompanying battery energy storage in Egypt. Set to become the country’s first hybrid solar and battery project, construction will take place over two phases.
The first phase involves the construction of a 561 MW solar plant alongside 100 MW/200 MWh of battery energy storage. Phase 1 is scheduled to begin commercial operation in the first half of 2026. The second phase will comprise a 564 MW solar plant and is set to begin commercial operation in the second half of 2026.
“Egypt has ambitious targets to build out significant renewable energy capacity the coming years, and this milestone further strengthens Scatec’s position as a leading renewable energy producer in the country,” says Terje Pilskog, CEO, Scatec.
Capital expenditure for the project is estimated at $590 million, which will be partly financed by an 80% non-recourse long-term project debt. Scatec has signed two $120 million equity bridge loans for the project, with $90 million expected to be provided by the Arab Energy Fund and $30 million from the European Bank for Reconstruction and Development.
Scatec will deliver engineering, procurement and construction services for the project. Additionally, the company will provide asset management and operations and maintenance services. Electricity from the project will be sold under a 25-year power purchase agreement – signed in March – with the Egyptian Electricity Transmission Company.
