Renewable energy solutions provider Scatec and multilateral bank the European Bank for Reconstruction and Development (EBRD) have signed a share purchase agreement establishing a renewable energy investment platform for Egypt.

The platform will be 60% owned by Scatec and 40% by the EBRD.

The EBRD has committed up to $221-million to the platform, of which about $170-million is equity and the remainder project-level guarantees.

The platform is designed primarily to accelerate the development and financing of Scatec’s near-term renewable-energy portfolio in Egypt.

It is expected to hold 40% equity interest in the Obelisk project, 51% in Shadwan and about 60% in the Egypt Aluminium Phase 1 (Dandara) and Energy Valley projects, alongside other minority co-investors.

Over time, the platform may also invest in additional opportunities across the broader Middle East and North Africa region.

“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,” says Scatec CEO Terje Pilskog.

“This equity investment marks an important step in strengthening Egypt’s energy security. By partnering with Scatec, the EBRD is providing long-term capital as a shareholder, helping expand access to reliable renewable energy.

“This will help address one of the country’s most pressing development challenges while reducing reliance on imported fossil fuels,” says EBRD sustainable infrastructure MD Harry Boyd-Carpenter.

Scatec aims to combine its development, execution and asset management capabilities with the EBRD’s regional expertise and financing capacity, with the platform to strengthen project delivery, support Egypt’s energy transition and providing a replicable model for future growth in selected markets across the region, the company points out.

The platform is structured through a holding vehicle, in which the EBRD will invest with Scatec. Scatec will remain the lead sponsor; developer; engineering, procurement and construction provider; and asset manager across the projects within the platform.