Scatec ASA, a leading renewable energy solutions provider, has signed shareholder agreements with Norfund, the Norwegian investment fund for developing countries and EDF power solutions, an international energy player which develops, builds and operates renewable and low-carbon energy production facilities, for an equity partnership in Scatec’s 1.1GW solar and 100MW/200MWh battery storage hybrid project, Obelisk in Egypt.
“We are very pleased to continue our valuable collaborations with Norfund and EDF power solutions through these partnerships. 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,” says Scatec CEO Terje Pilskog.
Following the transaction, Norfund will own 25% of the Obelisk holding company with Scatec owning the remaining 75%. EDF power solutions will own 20% of the operating company (SPV), bringing Scatec’s and Norfund’s total economic interest to 60% and 20% respectively with Scatec retaining economic control of the power plant.
Inviting equity partners at several ownership levels is part of Scatec’s strategy to enhance capital efficiency and increase value creation, while retaining control of the power producing entities. Scatec is in advanced discussions with additional equity partners, aiming to reduce Scatec’s economic interest in the project further.
