BAKU, Azerbaijan, June 16. The European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and British International Investment (BII) are jointly financing $479.1 million to support a 1.1 GW solar photovoltaic power plant with a 200 MWh battery energy storage system (BESS) in Egypt’s Nagaa Hammadi region, Trend reports.
The project is owned by Obelisk Solar Power SAE, a subsidiary of Scatec ASA.
The financing package covers about 80% of the estimated $590 million total project cost. The EBRD will provide a $173.5 million loan, including a $6.5 million grant and a guarantee from the European Fund for Sustainable Development. AfDB’s contribution totals $184.1 million, combining ordinary and concessional funds. BII is providing a $100 million concessional loan plus a $15 million returnable grant to support the battery storage component.
The solar plant will be developed in two phases. The first phase, with 561 MW of solar capacity and 100 MW/200 MWh of storage, is expected to begin operations in early 2026. The second phase, adding 564 MW of solar capacity, is scheduled for later in 2026. Energy generated will be sold under a 25-year, US dollar-denominated power purchase agreement with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee.
This will be Egypt’s first integrated large-scale solar and battery project. It is expected to produce about 3,000 GWh annually, support grid stability, reduce peak demand, and cut carbon dioxide emissions by up to 1.4 million metric tons per year. The project aligns with Egypt’s goal to achieve 42% renewable energy in its power mix by 2030.
Since 2012, the EBRD has invested over 13.3 billion euros in 202 projects across Egypt, focusing on sectors including energy, finance, agribusiness, manufacturing, water, and transport.