Scatec Solar PV and Battery Energy Storage System

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a senior loan of up to USD 173.5 million to Obelisk Solar Power, a Special Purpose Vehicle (SPV) wholly owned by Scatec ASA, to finance the construction and development of a 1 GWac solar PV plant with a 200 MWh Battery Energy Storage System (BESS) located in Nagaa Hammadi, Egypt. The electricity produced by the Project will be sold to the Egyptian Electricity Transmission Company (EETC) as the offtaker under a long-term Power Purchase Agreement (PPA). The Project benefits from a first loss risk cover from the European Fund for Sustainable Development plus (EFSD+) Hi-Bar guarantee programme. The programme contributes to transitioning economies in the European Neighbourhood by supporting sustainable investments in energy transition.

Project ID 55308

Status Concept Reviewed

Location

Egypt

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Dagher Khater
dagher.khater@scatec.com
+201273545541
www.scatec.com
Building 44, First Sector City Centre, the Northern 90 Street, Fifth Settlement, New Cairo

Project ID 55308

Status Concept Reviewed

Location

Egypt

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

11 Jun 2025

Disclosure date

07 May 2025

PSD Translation (Arabic) (PDF, 0.48MB)

Project Description

Project Objectives

The Project will enable the country to meet its declared renewable energy targets. The Project has a strong demonstration effect as it introduces one of the first hybrid renewable projects with an integrated BESS in the country, the success of which will pave the way for future similar projects helping to address the challenges posed by the intermittent nature of renewable energy sources to support grid stability. The Project will be delivered under the 10 GW renewables target set under the Energy Pillar of the Nexus Water-Food-Energy Programme (NWFE) country platform, an EBRD-led major policy engagement first announced at COP27.

Transition Impact

ETI score:65

expected transition impact of the Project is derived from the increased renewable energy generation and energy storage capacities, which will contribute to the transition to a low-carbon economy in a country that has a high reliance on thermal power generation. The successful implementation of the Project will set an example for the future deployment of BESS in the country. Once commissioned, the Project is expected to generate approximately 3,000GWh of electricity annually, corresponding to a reduction of CO2 emissions of up to 1,250k tonnes per annum. The Project is 100% GET.

In addition, the Project will also promote human capital development supporting local communities in the Naga Hammadi region, particularly youth and women, through the design and delivery of a new nationally accredited technical vocational training programme for the renewable energy and agriculture sectors. The training programme will be shaped by a comprehensive community needs assessment and aligned with EBRD's Inclusive Regions approach, aimed at addressing regional disparities and expand economic opportunities in lagging regions.

Client Information

OBELISK SOLAR POWER SAE

The client is a special-purpose vehicle incorporated in Egypt for the sole purpose of owning and operating the Project. The Project will be owned, managed, and operated by Scatec ASA.

EBRD Finance Summary

A senior loan of up to 173.5 USD million to Obelisk Solar Power, an SPV wholly owned by Scatec ASA, to finance the construction and development of a 1 GWac solar PV plant with a 200 MWh battery energy storage system (BESS) located in Nagaa Hammadi, Egypt.

Additionality

EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period than the market average, restricted foreign currency financing, etc. Such financing is necessary to structure the project.

EBRD provides comfort to clients and investors by mitigating non-financial risks, such as country, regulatory, project, economic cycle, or political risks.

Environmental and Social Summary

Categorised A (2019), the Project requires an Environmental and Social Impact Assessment (ESIA) due to (i) E&S impacts associated with the large scale PV construction (1 GWac) and battery storage (200 MWh); (ii) the associated E&S risks on labour and working conditions; (iii) health and safety; and (iv) exposure to human rights related issues with regard to the photovoltaic panels and battery supply chain. The Environmental and Social Impact Assessment (ESIA) has been developed by an external consultant. The ESIA package, including the ESIA and its addendum, Environmental and Social Action Plan (ESAP), Non-Technical Summary (NTS) and Stakeholder Engagement Plan (SEP) were disclosed in both Arabic and English on 27 February 2025.

Environmental and Social Due Diligence (ESDD) was conducted by an independent consultant to review the Client ESIA package and additional E&S documentation, and to review the capacity of the client and the project (including associated facilities) against EBRD E&S Policies and Performance Requirements (PR). The report has shown compliance with PRs, and determines that the Company's institutional capacity allows it to implement EBRD requirements and best practices. The Company will implement internal audits (and where applicable 3rd party audits) to review (and monitor) supply chains as well as EPC contractors to ensure alignment with best practices and that Lender's requirement will be met. The final ESAP will be agreed with the client prior to the approval of the Project by the Bank.

Overall, the ESIA and ESSD provided that the environmental and social impacts are mostly temporary, and construction related impacts including dust, noise, traffic, occupational H&S impacts and labour and working conditions related impacts will all be managed through the Environmental and Social Management Plan (ESMP) covering both construction and operation phases. The ESAP also includes a provision of cascading of all requirements to contractors. No displacement impacts on settlements and livelihoods were identified during ESIA and ESDD studies. Human and labour rights risks in solar panel and BESS suppliers were assessed both by the ESDD consultant and the Bank itself in line with the management approach, and no material risks and publicly available allegations were identified. The ESAP includes actions towards strengthening human resources practices of the client to bring it in line with EBRD requirements while covering contractors and suppliers as well. These include measures on strengthening grievance management, ensuring decent labour and working conditions, prevention of Gender Based Violence and Harassment, and contractual measures for solar suppliers to prevent forced and child labour. Other measures in the ESAP include the development and implementation of the ESMP, which covers all identified impacts including (not limited to) implementation of air quality, noise management, water, waste, occupational and community health and safety, and traffic and security management plans. Stakeholder engagement and grievance management will be delivered through the agreed Stakeholder Engagement Plan (SEP). The Bank will monitor compliance and performance in line with its requirements through quarterly monitoring by an independent E&S consultant during construction, yearly monitoring during operations, and monthly reporting by the client. Lenders will also conduct annual independent E&S audits to monitor compliance with their standards.

Technical Cooperation and Grant Financing

TC support of up to EUR 75,000 will be provided under the Gender and Economic Inclusion TC Framework (TCRS ID 12804), with a Client's contribution of at least 20% upon Project completion. EBRD will engage the qualified expertise to support the Project implementation by conducting comprehensive community needs assessment to inform the design of the nationally accredited training programme to support the capacity building of the local communities in Qena governorate.

Company Contact Information

Dagher Khater
dagher.khater@scatec.com
+201273545541
www.scatec.com
Building 44, First Sector City Centre, the Northern 90 Street, Fifth Settlement, New Cairo

PSD Last Updated

08 May 2025

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Project description

The European Bank for Reconstruction and Development (EBRD) is considering providing financing to Obelisk Solar Power, an SPV wholly owned by Scatec ASA, to finance the construction and development of a 1 GW solar PV plant with a 200 MWh battery energy storage system (BESS) located in Nagaa Hammadi, Egypt. Scatec ASA will serve as the project sponsor.

ESIA disclosure package

1. Environmental and Social Impact Assessment including Addendums in English and Arabic (February 2025)
2. Non-Technical Summary (NTS) in English and Arabic (February 2025)
3. Stakeholder Engagement Plan (SEP) in English and Arabic (February 2025)
4. Environmental and Social Action Plan (ESAP) in English and Arabic (February 2025)

Download English package in Zip format

Download Arabic package in Zip format

Company Contact Information

Contact Name: Dagher Khater
Email: dagher.khater@scatec.com
Telephone: +201273545541

Website: www.scatec.com
Address: Building 44, First Sector City Centre, the Northern 90 Street, Fifth Settlement, New Cairo

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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Scatec Solar PV and Battery Energy Storage System

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Additionality

Technical Cooperation and Grant Financing

Company Contact Information

PSD Last Updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

Project description

ESIA disclosure package

Company Contact Information