Egypt: The Obelisk sets a new benchmark for solar projects combined with large-scale storage systems

Scatec has connected the 1.1 GW Obelisk solar‑plus‑storage project in Nagaa Hammadi, Qena Governorate, to Egypt’s grid. The plant integrates 200 MWh of battery capacity, making it Africa’s largest hybrid facility. The rollout was staged: 561 MW in early 2026, followed by 564 MW later that year. Electricity is sold under a 25‑year, dollar‑denominated PPA with EETC, a structure that reduces currency risk and provides developers with predictable long‑term cash flows.

Financing structure

The $590 million project was financed by development institutions at 80% ($479 million).

1. AfDB: $184.1 million

2. EBRD: $173.5 million, including $101.9 million under EFSD+ guarantee and a $6.5 million grant

3. BII: $100 million concessional loan + $15 million returnable grant to reduce battery costs

4. Ownership is split: Scatec 60%, Norfund 20%, EDF Power Solutions 20%.

Expanding pipeline

Obelisk anchors Scatec’s fast‑growing Egyptian pipeline. In Q2 2025, the company closed financing for a 900-MW wind project and reported a 3.2-GW construction backlog. In January 2026, Scatec signed a 25‑year PPA with EETC for 1.95 GW of solar and 3.9 GWh of storage, spanning one hybrid facility and two standalone battery projects.

National strategy

Obelisk fits into Egypt’s Nexus of Water, Food and Energy programme, launched at COP27. The initiative has already delivered 4.2 GW of privately financed renewables worth $4 billion, retired 5 GW of fossil-fired capacity, and targets an additional 10 GW by 2030. Egypt’s broader goals include 42% renewable electricity by 2030, rising to 60–65% by 2040, alongside a low‑carbon hydrogen strategy backed by up to $60 billion in planned investment.

What it means

What it means For energy developers, Obelisk demonstrates Egypt’s ability to deliver bankable PPAs and integrate storage at utility scale. For public regulators, it provides a benchmark in long‑term contract design and embedding renewables in national planning. For DFIs and banks, the financing model shows how concessional loans and grants can de‑risk storage, but also highlights Egypt’s dependence on external capital. For industrial users, hybrid plants offer more reliable power than diesel, reducing intermittency risks for sectors like mining and telecom.

Sources: AFDB, EBRD, SCATEC, SCATSC, AFSIA

🇪🇬 Egypt: The Obelisk sets a new benchmark for solar projects combined with large-scale storage systems

What it means