Written by: Salma Al-Saqqa
The Norwegian company Scatec, specializing in the development of renewable energy projects, announced in cooperation with the European Bank for Reconstruction and Development (EBRD) the signing of an agreement to establish a joint investment platform dedicated to renewable energy projects in Egypt. This step comes with financial support from the European Bank reaching $221 million, which strengthens the clean energy sector in the country and accelerates the pace of future project development.
Scatec's ownership stake in this new investment platform is set to be approximately 60 percent, while the EBRD will hold the remaining 40 percent. The bank's financial commitments include providing approximately $170 million in equity, in addition to providing project-level guarantees to cover the remaining percentage of the necessary investments.
The new platform aims to accelerate the development and financing of Scatec's near-term renewable energy project portfolio in Egypt, which includes solar energy, wind energy, and energy storage systems. The platform will own stakes in several prominent projects, including the Obelisk hybrid solar and storage project, the Shadwan wind energy project, and other projects such as the Egypt Aluminum phase one, Dendera, and Energy Valley solar and energy storage projects, with the participation of other minority investors.
Scatec will remain the lead developer, sponsor, EPC contractor, and asset manager for the projects owned by the platform. The new platform will operate through a holding company jointly owned by the two parties, and although its primary focus will be on the Egyptian market, it may study investment opportunities in the renewable energy sector and green infrastructure projects in other regions of the Middle East and North Africa in the future.
