Norwegian renewable energy company Scatec has secured a $150 million equity bridge loan from The Arab Energy Fund to advance two major renewable energy projects in Egypt, including the 900-megawatt Shadwan onshore wind farm and the 1,950-megawatt Energy Valley solar project with 3,935 megawatt-hours of battery storage.

Financing unlocks major projects

The three-year facility provides $50 million for Shadwan and $100 million for Energy Valley, giving Scatec financing flexibility as it moves toward construction.

The company has also signed a joint development agreement with EDF and is targeting a 29% equity stake for EDF in Shadwan, while planning to bring in additional investors.

Shadwan carries an estimated $716 million capital cost and is expected to rank among Africa’s largest onshore wind farms.

Once operational, the project is projected to generate about 4 terawatt-hours of electricity annually and prevent roughly 1.6 million metric tons of carbon dioxide emissions each year.

Scatec limits upfront capital

Scatec plans to develop Shadwan using its integrated model, combining the equity bridge loan from TAEF with cash generated through its engineering, procurement and construction activities.

The approach is designed to reduce the company’s immediate equity requirement while keeping the project moving toward construction.

“Reaching these milestones reflects the scale of what Scatec is building in Egypt,” CEO Terje Pilskog said. He said Shadwan and Energy Valley would expand the company’s renewable energy portfolio while allowing construction of Shadwan to begin with limited capital deployment.

EDF expands Egypt partnership

EDF Power Solutions CEO Béatrice Buffon said Shadwan builds on the companies’ partnership in Egypt and would use the country’s strong wind resources to produce lower-carbon electricity. The project supports Egypt’s push to accelerate renewable energy development and diversify its electricity generation mix.

TAEF Chief Banking Officer Nicolas Thevenot said the financing demonstrates the fund’s commitment to energy infrastructure supporting energy security and sustainability.

The agreement gives Scatec additional funding capacity as Egypt seeks to expand large-scale renewable generation and strengthen its long-term energy supply.

Construction targets 2027

Scatec has also signed mandate letters with a consortium of development finance institutions for long-term, nonrecourse project financing for both developments. Financial close for the projects is expected by the end of the year, alongside the start of construction on Energy Valley.

Scatec will provide engineering, procurement and construction, asset management, and operations and maintenance services for both projects. Shadwan will be developed in phases, with the first phase expected to reach commercial operations by the end of 2027.

Egypt becomes key growth market

Founded in 2007 and headquartered in Oslo, Scatec develops, builds, owns and operates renewable energy and storage projects across global markets.

The company currently has 6.6 gigawatts of generation capacity and 2 gigawatt-hours of storage capacity in operation and under construction across five continents.