Energy · Financing

USD 479.1 Million Solar & Battery
Storage Financing

Client
Scatec / Obelisk Solar
Deal Value
USD 479.1 million
Location
Nagaa Hammadi, Egypt
Lenders
EBRD · AfDB · BII

Mazghouny & Co acted as Egyptian legal counsel for Scatec and its affiliate Obelisk Solar on the project financing of a 1 GW solar photovoltaic plant and 200 MWh battery energy storage system at Nagaa Hammadi in southern Egypt — one of the largest solar and storage projects to reach financial close in Africa.

The transaction was financed by a consortium of development finance institutions: the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and British International Investment (BII, formerly CDC). The combined debt and equity structure required careful navigation of each institution's environmental, social, and governance standards alongside Egyptian regulatory and security requirements.

The firm advised across the full suite of project finance documentation: the power purchase agreement with the Egyptian Electricity Transmission Company (EETC), the land lease and usufruct arrangements, the EPC contract structure, the O&M arrangements, the security package, the direct agreements with the government, and the conditions precedent to financial close.

Significance

At 1 GW of solar capacity plus 200 MWh of battery storage, this project represents one of Egypt's — and Africa's — largest hybrid renewable energy financing transactions at the time of close. The battery storage component was a particular structuring challenge, requiring novel documentation frameworks to accommodate a technology type not previously covered by Egypt's standard IPP regulatory framework.

The transaction advances Egypt's national renewable energy targets under its 2035 energy strategy and contributes to the country's ambition to become a regional electricity export hub.

Deal Summary
Deal Type
Project Financing
Sector
Energy — Solar & Storage
Capacity
1,000 MW solar + 200 MWh storage
Offtaker
Egyptian Electricity Transmission Company (EETC)
Practice Areas
Energy Financing Projects
Firm Role
Egyptian legal counsel to Scatec / Obelisk Solar. Full project finance documentation including PPA, land arrangements, EPC structure, O&M, security package, and government direct agreements.
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