Scatec activates final phase of gigawatt-scale Obelisk hybrid solar and battery project in Egypt

Scatec has achieved full commercial operations for the 1.1 GW Obelisk solar and battery storage project in Egypt. The facility, recognized as the largest hybrid installation of its kind in Africa, strengthens national grid stability and secures long-term clean energy supply under a 25-year power purchase agreement.

Scatec has officially commenced full commercial operations for the second and final phase of its Obelisk renewable energy initiative in Egypt, bringing the total solar capacity of the hybrid facility to 1.1 gigawatts alongside a 100-megawatt battery energy storage system. The Norwegian-headquartered renewable energy developer operates as a fully integrated independent power producer, managing project development, engineering, procurement, construction, and long-term asset management across global emerging markets. The newly activated second phase contributes an additional 564 megawatts of solar generation, complementing the 561 megawatts deployed during the initial construction stage. This rapid execution follows the execution of a long-term power purchase agreement in late 2024, culminating in the delivery of what is currently recognized as the largest combined solar and battery storage installation on the African continent.

The successful commissioning of this massive hybrid infrastructure addresses critical vulnerabilities within regional power networks by providing dispatchable clean electricity. Unlike standalone solar arrays that fluctuate with weather conditions, the integrated battery storage component allows the facility to stabilize grid frequency and supply reliable baseload power during peak demand periods. By locking in a 25-year power purchase agreement, the project directly insulates the national grid from volatile global fossil fuel prices while advancing domestic decarbonization targets. The deployment of utility-scale battery storage at this magnitude demonstrates the technical and commercial viability of integrating intermittent renewable sources into legacy grid architectures without compromising network reliability.

For the broader North African energy sector, this milestone establishes a new benchmark for utility-scale hybrid deployments and signals a definitive shift in how development finance institutions underwrite emerging market infrastructure. The capital structure relied on a consortium of senior lenders, including the European Bank for Reconstruction and Development, the African Development Bank, British International Investment, and the European Investment Bank, alongside minority equity partners such as the National Bank of Egypt, Norfund, and EDF Power Solutions. This syndicated financing model provides a replicable blueprint for future cross-border renewable investments, proving that large-scale climate infrastructure can achieve financial close and operational delivery in complex regulatory environments. Consequently, regional policymakers are likely to accelerate the retirement of aging thermal generation assets in favor of hybrid renewable tenders that mandate integrated storage capabilities.

From a corporate strategy perspective, the completion of this asset significantly expands the developer's operational footprint in one of its most critical long-term growth jurisdictions. With this facility now online alongside its existing BenBan solar complex, the company controls approximately 1.5 gigawatts of operational generation capacity within the country. Furthermore, the organization maintains a robust near-term development pipeline in the region comprising over 4.3 gigawatts of renewable generation and 4.1 gigawatt-hours of battery storage, which is projected to yield roughly 17 terawatt-hours of clean electricity annually. For institutional investors, this sustained capital deployment validates the firm's integrated business model, demonstrating its capacity to secure multilateral financing, execute complex engineering mandates, and generate predictable, contracted cash flows across multi-decade asset lifecycles in high-growth emerging economies.