Norwegian renewable energy firm Scatec has signed equity deals for a massive solar-plus-storage project in Egypt and begun operations at a site in South Africa.
Scatec signed two equity deals with Norfund, the Norwegian state-run investment fund, and French energy utility EDF for stakes in its 1.1GW/200MW Obelisk solar-plus-storage project in Egypt.
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The deals will see Norfund take a 25% stake in the holding company for the Obelisk solar-plus-storage project, while EDF will take 20% in the operating company. Scatec will retain majority ownership of Obelisk, which is its largest renewables undertaking to date.
“Obelisk is Scatec’s largest project to start construction to date and combines solar and batteries to deliver stable and cost-competitive renewable energy to support Egypt’s growing power demand and energy transition,” said Scatec CEO Terje Pilskog. Earlier this year, the company raised over US$400 million to support the project.
Scatec said it is pursuing more equity deals with other partners to reduce its economic interest in the Obelisk project, adding in a statement that partnering with external equity is part of its plan to “enhance capital efficiency and increase value creation, while retaining control of the power producing entities.”
Norfund is the Norwegian state’s development finance institution, run by the Ministry of Foreign Affairs. It has financed Scatec’s renewables operations before, notably the 130MW Narino solar project in Colombia.
Scatec begins operations at 273MW Grootfontein solar PV plant in South Africa
Scatec has also begun operations at its 273MW Grootfontein solar power plant in South Africa.
The site is contracted under a 20-year power purchase agreement (PPA) awarded in South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
Grootfontein was awarded in the fifth round of REIPPPP, and Scatec reached financial close on the projects in 2023. Scatec has significant investments in South Africa, and was awarded a further 846MW of capacity in the most recent REIPPPP auction.
“As our first project in the Western Cape, and the first solar project to reach COD under REIPPPP Round 5, this achievement reflects the dedication and resilience of our teams and contractors,” said Alberto Gambacorta, EVP and general manager for Sub-Saharan Africa at Scatec.
“Grootfontein strengthens Scatec’s position as a trusted renewable energy partner in South Africa and underscores our commitment to scaling impact through sustainable, high-quality projects.”
Scatec owns 51% of the Grootfontein site, with minority stakes held by H1 Holdings, a local Black Economic Empowerment partner and the Grootfontein Local Community Trust.
