The European Bank for Reconstruction and Development (EBRD) has committed a $30 million equity bridge loan to support the development of Egypt’s first utility-scale hybrid solar and battery storage project, in a bid to accelerate the country’s green energy transition.
The financing will go to Obelisk Solar Power, a special purpose vehicle owned by Norwegian renewables developer Scatec ASA, and will help fund the construction of a 1 GWac photovoltaic solar plant combined with a 200 MWh battery energy storage system in Nagaa Hammadi, Upper Egypt.
The project, one of the first of its kind in Egypt, is expected to reduce carbon dioxide emissions by approximately 1.36 million tonnes per year and improve the reliability of Egypt’s electricity grid amid rising demand.
The facility is being positioned as a pilot for the broader deployment of hybrid renewable technologies in the country.
The investment falls under the energy pillar of Egypt’s flagship Nexus on Water, Food and Energy (NWFE) initiative, launched at COP27 in Sharm El Sheikh.
The programme is designed to unlock private investment and position Egypt as a regional clean energy hub.
“This innovative project marks a key milestone in Egypt’s shift to sustainable energy,” the EBRD said in a statement. “It will not only diversify the energy mix but also enhance grid stability by integrating battery storage technologies.”
The deal also reinforces the EBRD’s close partnership with Scatec, one of its strategic renewable energy clients.
Scatec already operates multiple solar assets in Egypt, including projects in Benban Solar Park, and is expanding its footprint across Africa and the Middle East.
Egypt, a founding member of the EBRD, has received over €13.8 billion ($15.4 billion) in financing from the bank since 2012, across 201 projects spanning finance, manufacturing, transport, infrastructure, and green energy.
The new solar-plus-storage project is expected to play a pivotal role in meeting Egypt’s climate targets and supporting its commitment to increase the share of renewables in its energy mix to 42% by 2035.
