- Renewable energy developer Scatec has signed shareholder agreements with Norfund and EDF Power Solutions to bring the two organisations in as equity partners on its vast Obelisk hybrid power project in Egypt.
The scheme, which combines 1.1GW of solar generation with a 100MW/200MWh battery storage system, is Scatec’s largest project to reach the construction phase. The company says the development will provide reliable, competitively priced clean energy to help meet Egypt’s rising electricity demand and support the country’s energy transition.
“We are very pleased to continue our valuable collaborations with Norfund and EDF Power Solutions through these partnerships,” said Scatec chief executive Terje Pilskog. “Obelisk is Scatec’s largest project to start construction to date and combines solar and batteries to deliver stable and cost-competitive renewable energy.”
Under the new shareholder structure, Norfund will take a 25% stake in the Obelisk holding company, with Scatec retaining the remaining 75%. EDF Power Solutions will acquire 20% of the operating company (SPV). This leaves Scatec and Norfund with economic interests of 60% and 20% respectively, while Scatec maintains economic control of the plant.
The company said bringing in investors at multiple levels forms part of its wider strategy to improve capital efficiency and boost value creation while keeping operational control of its power-producing assets. Scatec confirmed it is in advanced talks with further potential equity partners, with the aim of reducing its economic exposure to the project over time.
Author: Bryan Groenendaal
