The European Bank for Reconstruction and Development (EBRD) is committing up to USD 221 million in equity to a renewable energy and battery storage investment vehicle established by Norway-based Scatec ASA, supporting plans to add 2.7 GW of solar capacity, 900 MW of wind capacity and 4.2 GWh of battery energy storage in Egypt.
The investment in Egypt Renewables Holdings B.V. will give the EBRD a minority equity stake, while Scatec will remain the majority shareholder. The vehicle is intended to finance the acquisition, development and construction of renewable energy infrastructure in Egypt and the wider southern and eastern Mediterranean (SEMED) region.
EBRD Takes Minority Stake in Scatec Investment Vehicle
The equity commitment will provide long-term capital for the renewable energy portfolio, bringing together the EBRD as an institutional investor and Scatec as the majority commercial stakeholder. The vehicle’s initial focus is Egypt, where the planned capacity additions are intended to strengthen energy security and reduce dependence on imported fossil fuels.
The EBRD’s investment of up to USD 221 million is an equity commitment rather than a conventional loan. The Bank says the arrangement will support the development of renewable energy infrastructure through its role as a shareholder, while Scatec gains access to institutional capital to advance its regional growth plans.
The portfolio is planned to include 2.7 GW of solar capacity, 900 MW of wind capacity and 4.2 GWh of battery energy storage. The announcement does not provide a schedule for developing the capacity or identify the individual projects that will be financed through the vehicle.
Energy Security Drives Egypt Renewable Energy Investment
Harry Boyd-Carpenter, Managing Director of the EBRD’s Sustainable Infrastructure Group, said the investment would help address Egypt’s energy challenges.
“This equity investment marks an important step in strengthening Egypt’s energy security,” he said in the announcement. “By partnering with Scatec, the EBRD is providing long-term capital as a shareholder, helping to expand access to reliable renewable energy. This will help to address one of the country’s most pressing development challenges while reducing reliance on imported fossil fuels.”
The planned combination of solar and wind generation with battery energy storage forms the basis of the portfolio’s renewable energy and storage strategy. The EBRD identifies energy security and lower dependence on imported fossil fuels as the principal objectives of the investment.
Scatec Chief Executive Officer Terje Pilskog said Egypt had become one of the company’s most important markets.
“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. Partnering with the EBRD brings institutional capital and a long-term commitment that will accelerate Scatec’s growth ambitions across the region.”
Projects Linked to Egypt’s Nexus Initiative
The renewable energy projects supported by the investment will be developed under the energy pillar of Egypt’s Nexus of Water, Food and Energy initiative. The initiative was launched at the COP27 climate conference in Sharm El Sheikh.
According to the EBRD, the energy pillar supports private-sector renewable energy capacity, electricity-network investment, skills development and a just energy transition. The new investment vehicle therefore forms part of a broader institutional framework for advancing Egypt’s energy priorities.
The portfolio’s initial targets include 2.7 GW of solar capacity, 900 MW of wind capacity and 4.2 GWh of battery storage. The EBRD has not disclosed how the equity commitment will be allocated across individual projects or when the planned capacity will be delivered.
EBRD Builds on Existing Partnership With Scatec
Scatec ASA is a Norway-based integrated power producer specialising in renewable energy solutions. Founded in 2007, the company has been listed on the Oslo Stock Exchange since 2014.
The EBRD describes Scatec as a long-standing partner in renewable energy and battery storage projects across the Bank’s countries of operation. The new investment vehicle extends that relationship through a direct equity stake, with Scatec retaining majority ownership.
The arrangement provides a structure for financing the acquisition, development and construction of renewable energy infrastructure in Egypt and the wider SEMED region. The Bank’s participation is intended to provide long-term shareholder capital for the portfolio.
Investment Expands EBRD’s Presence in Egypt
The equity commitment builds on the EBRD’s existing investment activity in Egypt. Since beginning operations in the country in 2012, the Bank has invested more than USD 17.9 billion across 238 projects, according to its figures.
The new vehicle is intended to support renewable energy infrastructure initially in Egypt, with the potential to facilitate projects elsewhere in the SEMED region. However, the EBRD’s announcement does not specify additional countries, individual projects or a timetable for expanding beyond the initial portfolio.
The planned 2.7 GW of solar capacity, 900 MW of wind capacity and 4.2 GWh of battery storage define the initial scope of the investment. With the EBRD as a minority shareholder and Scatec retaining majority ownership, Egypt Renewables Holdings B.V. will provide a structure for pursuing the planned renewable energy and storage development.
The EBRD has committed up to USD 221 million in equity, but the announcement does not disclose a detailed breakdown of the commitment or a completion schedule for the planned capacity additions.