The European Bank for Reconstruction and Development has committed up to $221 million to a renewable energy investment platform with Norway’s Scatec, providing fresh capital for a pipeline of solar and wind projects in Egypt. The agreement gives EBRD a 40% stake in the platform, with Scatec retaining 60% ownership.

The commitment comprises approximately $170 million in equity, with the balance provided through project-level guarantees. The structure is designed to help finance Scatec’s near-term renewable energy portfolio in Egypt, where demand for reliable electricity and efforts to reduce dependence on imported fossil fuels are shaping investment priorities.

Four projects anchor investment

The platform is expected to hold a 40% equity interest in the Obelisk project, 51% in Shadwan and approximately 60% stakes in the first phase of Egypt Aluminium, known as Dandara, and the Energy Valley project. The investments will be made alongside other minority co-investors.

Scatec said the platform could eventually expand beyond Egypt into other markets across the Middle East and North Africa. The arrangement also allows the Norwegian company to bring in institutional capital while retaining its role in developing, building and managing the underlying renewable energy assets.

“Egypt has become one of Scatec’s most important markets, and this platform reflects both the scale of what we are building there and the quality of the assets we have developed,” Scatec CEO Terje Pilskog said.

EBRD backs energy security

Harry Boyd-Carpenter, EBRD’s managing director for sustainable infrastructure, said the investment would help strengthen Egypt’s energy security by providing long-term shareholder capital and expanding access to renewable electricity. The bank expects the partnership to support development priorities while reducing reliance on imported fossil fuels.

Under the structure, Scatec will remain the lead sponsor, developer, engineering, procurement and construction provider, and asset manager for projects within the platform. EBRD will contribute capital, financing capacity and regional expertise as the partners seek to accelerate project development and deployment.

The deal also supports Scatec’s strategy of partnering with institutional investors to expand its renewable energy portfolio and recycle capital into new projects. For EBRD, the platform adds to its investment activity in Egypt, where it has invested more than €16 billion (about $18 billion), across 238 projects since beginning operations in 2012.

Fresh financing for solar, wind

The agreement follows Scatec’s recent securing of a $150 million equity bridge loan from The Arab Energy Fund to advance two major Egyptian projects: the 900-megawatt Shadwan onshore wind farm and the 1,950-megawatt Energy Valley solar project, which includes 3,935 megawatt-hours of battery storage.

Founded in 2007 and headquartered in Oslo, Scatec develops, builds, owns and operates renewable energy and storage projects. The company has 6.6 gigawatts of generation capacity and 2 gigawatt-hours of storage capacity in operation and under construction across five continents, according to the company.