BII, AfDB and EBRD support solar and battery storage project in Egypt
A $479.1 million loan to Obelisk Solar Power.
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British International Investment (BII), the African Development Bank (AfDB) and the European Bank for Reconstruction and Development (EBRD) are providing a total of $479.1 million to Obelisk Solar Power, a special-purpose vehicle incorporated in and owned by Scatec. This financing will support the development of a 1.1 GW solar power plant integrated with a 200 MWh battery energy storage system (BESS) in Egypt’s Nagaa Hammadi region.
The AfDB is providing a $184.1 million financing package, comprising $125.5 million in ordinary resources, $20 million in concessional funding from its Sustainable Energy Fund for Africa, and $18.6 million from the Canada-African Development Bank Climate Fund – a partnership with the Canadian government. A further $20 million will be channelled from the CIF’s Clean Technology Fund through the AfDB.
The EBRD will provide a financing package of up to $173.5 million, of which $101.9 million will benefit from a European Fund for Sustainable Development (EFSD+) first-loss cover guarantee for the first 18 years, in addition to a $6.5 million grant from the EBRD Shareholder Special Fund.
BII will contribute a $100 million concessional loan and a $15 million returnable grant aimed at reducing the cost of the BESS component.
The integrated power plant will be developed by Scatec and built in two phases. The first phase, with 561 MW of solar and 100 MW/200 MWh of battery storage, aims to start operations in the first half of 2026. The second phase, with 564 MW of solar, aims to start operations in the second half of 2026. The energy will be sold under a US dollar-denominated 25-year power purchase agreement with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee.
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