Scatec has signed equity bridge loan (EBL) agreements totalling $150 million with the The Arab Energy Fund (TAEF). The 3-year EBL facility consists of $50 million for Shadwan and $100 million for the 1,950 MW solar 3,935 MWh BESS Energy Valley project.
The company has also signed a joint development agreement with EDF, for a targeted equity stake of 29 percent in Shadwan, and intends to invite additional equity partners into the project.
The 900 MW Shadwan project with a total capex of $716 million is expected to generate approximately 4 TWh annually and avoid an estimated 1.6 million tons of CO2 emissions annually. Shadwan will be delivered through Scatec’s highly capital-efficient integrated model, optimising Scatec’s equity funding requirement by combining the equity bridge loan from TAEF with cash flows generated from Scatec’s D&C activities.
“Reaching these milestones reflects the scale and momentum of what Scatec is building in Egypt” said Scatec CEO Terje Pilskog. “Shadwan and Energy Valley together represent a significant step in our ambition to develop a world-class renewable energy portfolio in one of the most attractive markets for cost-efficient, secure and clean energy. The support from The Arab Energy Fund is a strong vote of confidence in both projects and enables us to initiate construction of Shadwan with limited capital deployment.”
Scatec has signed mandate letters with a consortium of development finance institutions for long-term non-recourse project financing at attractive terms, with financial close for both projects and construction start also for Energy Valley expected by year end. Scatec will deliver Engineering, Procurement and Construction (EPC), Asset Management (AM) and Operations & Maintenance (O&M) services for both projects. Shadwan will be built in phases with the first phase expected to reach commercial operation date at the end of 2027.
“Shadwan represents a step forward in the development of EDF Power Solutions in Egypt, under its successful partnership with Scatec” added EDF power solutions CEO Béatrice Buffon. “Capitalising on Egypt's exceptional wind resources, Shadwan will provide competitive, low-carbon electricity, supporting the country's ambition to accelerate the implementation of renewable energy projects.”
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