1.1GW Egyptian Solar Storage Project for Scatec

PVTIME – Norwegian renewable energy firm Scatec has announced two significant milestones in Africa: it has secured an equity agreement for the 1.1GW, 200MWh Obelisk solar storage project in Egypt with Norfund and EDF, and it has commissioned the 273MW Grootfontein solar plant in South Africa.

The Obelisk scheme, Scatec’s largest renewable project to date, is Africa’s biggest integrated solar storage development. Norfund will hold a 25% stake in the holding company, while EDF will hold a 20% stake in the operating company, with Scatec retaining majority control. Awarded a golden licence, the project is part of Egypt’s Water, Food and Energy Nexus Platform and will supply power via a long-term power purchase agreement with Egypt’s transmission company.

Scatec CEO Terje Pilskog emphasised the project’s significance in Egypt’s energy transition, noting its capacity to deliver stable, cost-competitive electricity. The project uses bifacial modules with over 22% efficiency and tracking systems to boost output by 15-20%, while the 200MWh storage system mitigates intermittency. Over $400 million in funding has been secured, including a $173.5 million senior loan from the European Bank for Reconstruction and Development. Scatec is planning further equity partnerships to enhance capital efficiency.

In South Africa, the Grootfontein plant, Scatec’s first in the Western Cape, is the first fifth-round REIPPPP solar project to enter commercial operation. Following a 5.1 billion rand investment, it secured Standard Bank-led financing in 2023, and it operates under a 20-year power purchase agreement. Scatec holds a 51% stake, while H1 Holdings owns 46.5%, and a community trust owns the remaining 2.5%.

Alberto Gambacorta, Scatec’s senior executive for Sub-Saharan Africa, stated that the project strengthens the firm’s presence in South Africa. Its installed capacity in the country now exceeds 1GW, with a further 846MW secured in the latest REIPPPP round.

Norfund’s partnership with Scatec builds on its previous support for the Colombian Nariño solar project, and Scatec’s local ownership in South Africa aligns with the country’s industrial policies. Industry observers have noted that these dual advancements will support the energy transitions of both Egypt and South Africa while also solidifying Scatec’s renewable footprint in Africa.