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 for an equity partnership in Scatec's 1.1GW solar and 100MW/200MWh battery storage hybrid project, Obelisk in Egypt. The agreements were announced on December 8 in Oslo and Cairo.

Project Scale and Significance

The Obelisk project represents Scatec's largest project to date to start construction. The hybrid facility combines 1.1 GW of solar capacity with 100MW/200 MWh of battery storage to deliver stable, cost-competitive renewable energy. According to Scatec CEO Terje Pilskog, the project is designed to support Egypt's growing power demand and energy transition.

"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," Pilskog stated.

Ownership Structure and Partnership Details

The partnership involves a complex ownership structure across different levels of the project. Following the transaction, Norfund will own 25% of the Obelisk holding company, with Scatec owning the remaining 75%. At the operating company level, EDF power solutions will own 20% of the operating company (SPV).

This ownership arrangement results in Scatec and Norfund having total economic interests of 60% and 20% respectively, in the overall project, while Scatec retains economic control of the power plant. The multi-tiered partnership structure allows different partners to participate at various ownership levels within the same project.

Strategic Approach and Future Plans

The equity partnership arrangements are part of Scatec's broader strategy to enhance capital efficiency and increase value creation while retaining control of the power-producing entities. The company's approach involves inviting equity partners at multiple ownership levels, enabling diversified investment while maintaining operational control.

Scatec is currently in advanced discussions with additional equity partners for the Obelisk project. The company aims to reduce Scatec's economic interest in the project further through these additional partnerships, continuing its strategy of optimizing capital structure while maintaining control over operations.

Company Background and Operations

Scatec describes itself as a leading renewable energy solutions provider that accelerates access to reliable and affordable clean energy in emerging markets. As a long-term player in the renewable energy sector, the company develops, builds, owns, and operates renewable energy plants.

The company currently has 6.2 GW in operation and under construction across five continents. Scatec is committed to growing its renewable energy capacity, delivered by employees and partners driven by a shared vision of 'Improving our Future'. The company is headquartered in Oslo, Norway and is listed on the Oslo Stock Exchange under the ticker symbol 'SCATC'.

EDF power solutions is described as an international energy player that develops, builds, and operates renewable and low-carbon energy production facilities. Norfund is the Norwegian investment fund for developing countries, and it continues its collaboration with Scatec through this partnership.

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