Middle East Energy
Egypt's 1.1 gigawatt Obelisk solar and battery plant reaches full commercial operation
By Staff Writer | 14 August 2026
The second phase adds 564 megawatts of solar capacity to a plant whose first phase already carried the whole of its 100 megawatt battery, and the output is contracted for 25 years.
Commercial operation was declared on 12 August for the second and final phase of the Obelisk solar and battery plant in Egypt, completing a scheme of 1.1 gigawatts of solar capacity paired with a 100 megawatt, 200 megawatt hour battery energy storage system. The developer is Scatec, which holds the controlling interest.
The plant was built in two phases. The first comprised 561 megawatts of solar capacity together with the whole of the battery system, and came into operation in February. The second phase now adds a further 564 megawatts of solar. The power purchase agreement was signed in November 2024, which puts roughly 21 months between contract signature and full commercial operation on a plant of this size.
Reaching full commercial operations at Obelisk marks a defining milestone for Scatec. Completing Africa's largest hybrid solar and battery installation demonstrates our ability to develop, finance, and deliver large-scale renewable energy projects in emerging markets. Obelisk will supply clean, reliable power to Egypt for 25 years and is a tangible contribution to the country's energy security and transition.
Terje Pilskog, Chief Executive Officer of Scatec
How the scheme is put together
Output is sold to the Egyptian Electricity Transmission Company under a 25 year power purchase agreement denominated in United States dollars, according to the developer's own announcement. The plant is projected to deliver over 3,000 gigawatt hours of electricity a year, with an expected abatement of more than 1.2 million tonnes of carbon dioxide annually.
Ownership sits with Scatec as controlling shareholder alongside National Bank of Egypt, Norfund and EDF Power Solutions as minority equity partners. Senior lending came from the European Bank for Reconstruction and Development, the African Development Bank, British International Investment and the European Investment Bank. Scatec carried engineering, procurement and construction, asset management and operations and maintenance itself, across the full project lifecycle.
One party held the construction contract, the operations contract and the controlling equity stake. That structure removes the interfaces where delay and defect disputes normally start, and it concentrates the consequences of failure in one balance sheet.
What it signals for the region
With Obelisk in operation alongside the 380 megawatt plant at Benban, the developer now has approximately 1.5 gigawatts running in Egypt. Its stated near term pipeline in the country runs to more than 4.3 gigawatts of generation and 4.1 gigawatt hours of battery storage, with the combined portfolio expected to deliver approximately 17 terawatt hours of electricity a year.
The interesting part for contractors is the pairing rather than the size. Solar capacity of 1.1 gigawatts is now routine procurement in the region. A 200 megawatt hour battery installed and commissioned with the first phase, ahead of most of the generating capacity it supports, is not. It puts the storage works on the critical path early, and it brings a set of commissioning tests, grid code compliance obligations and performance guarantees that most solar subcontractors have not previously priced.
The 25 year term is the number to hold on to. A dollar denominated offtake of that length, backed by four development finance institutions, is what allowed the plant to be financed and built at the pace it was. Where that combination is available, the same pace will be expected elsewhere.