Egypt’s Solar Capacity Hits 1.5GW as Obelisk Project Goes Fully Live

Scatec ASA has taken its 1.1GW Obelisk solar project in Egypt into full commercial operation after completing its second phase, bringing about 1.5GW of renewable energy capacity under its operation in the country.

The Obelisk project, which includes 100MW/200MWh of battery storage, was completed in two phases. The first has 561MW of solar capacity and the full battery system, while the second has 564MW of solar capacity.

The project is Africa’s largest hybrid solar and battery installation. It is expected to produce more than 3,000 gigawatt-hours of clean electricity each year for the Egyptian Electricity Transmission Company under a 25-year, US dollar-denominated power purchase agreement.

The plant is also expected to prevent more than 1.2 million tonnes of carbon dioxide emissions each year.

Second phase completes 1.1GW plant

Scatec signed the project’s power purchase agreement in November 2024 and completed the development in what the company called a record timeframe.

With the second phase now operational, the full Obelisk project is producing electricity from its 1.1GW solar capacity, supported by the 100MW/200MWh battery system.

The battery system can store electricity for use when needed. Its inclusion gives the project both solar generation and storage capacity in one installation.

Scatec is the controlling shareholder of the project. National Bank of Egypt, Norfund and EDF Power Solutions have minority equity stakes.

The European Bank for Reconstruction and Development, African Development Bank, British International Investment and European Investment Bank provided senior lending for the project.

Scatec handled the engineering, procurement and construction work, as well as asset management and operations and maintenance services.

The company’s chief executive officer, Terje Pilskog, said full commercial operations at Obelisk showed its ability to develop, finance and deliver large renewable energy projects in emerging markets.

Company now operates about 1.5GW in Egypt

Obelisk now operates alongside Scatec’s 380MW BenBan solar plant in Egypt, giving the company about 1.5GW of renewable energy capacity in operation in the country.

Scatec also has a near-term Egyptian portfolio containing more than 4.3GW of renewable energy capacity and 4.1GWh of battery storage capacity.

Those projects are projected to generate about 17 terawatt-hours of clean electricity each year. They are also expected to support the stability of Egypt’s electricity grid.

The figures place Egypt as an important market in Scatec’s renewable energy plans. The company said Egypt is a key long-term growth market for its business.

The Obelisk project also gives Egypt access to a large solar power plant supported by battery storage under a long-term electricity supply agreement.

Its annual output is projected at more than 3,000GWh, with the power supplied to the Egyptian Electricity Transmission Company for 25 years.

The completion of the project brings all its planned components into operation, including the 564MW solar capacity delivered in the second phase.

Scatec’s Egyptian operations now include the completed Obelisk project and the 380MW BenBan solar plant, with further renewable energy and battery storage projects in its near-term portfolio.