EBRD Takes Up to $221 Million Equity Stake in Scatec vehicle to Back 2.7 GW of Solar

The European Bank for Reconstruction and Development (EBRD) is committing an equity investment of up to US$ 221 million to support a new renewable energy and battery energy storage portfolio in the southern and eastern Mediterranean (SEMED) region, with Egypt as the initial focus. The investment, announced in a statement from the Bank, is designed to strengthen Egypt's energy security and reduce the country's reliance on imported fossil fuels.

A minority stake in a Scatec investment vehicle

The EBRD is taking an equity stake of up to USD 221 million in an investment vehicle established by Scatec ASA, the Norway-based renewable energy company. The vehicle, called Egypt Renewables Holdings B.V., plans to facilitate the addition of 2.7 GW of solar capacity, 900 MW of wind capacity and 4.2 GWh of battery energy storage to Egypt's renewable energy capacity.

Through the investment, the EBRD is acquiring a minority equity stake in the vehicle, with Scatec ASA remaining the majority stakeholder. According to the Bank, the vehicle will be used to finance the acquisition, development and construction of renewable energy infrastructure in Egypt and across the SEMED region more broadly. The transaction pairs the two organisations in a long-term partnership structure. The EBRD describes its role as providing long-term capital as a shareholder, while Scatec gains access to institutional capital committed over an extended horizon.

Energy security at the centre of the rationale

Harry Boyd-Carpenter, Managing Director of the EBRD's Sustainable Infrastructure Group, framed the investment as a response to one of Egypt's most pressing development 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 Bank's statement explicitly ties the portfolio to two stated outcomes: strengthening Egypt's energy security and reducing the country's dependence on imported fossil fuels. The addition of battery energy storage alongside the generation capacity is presented as part of a combined renewable energy and storage offering rather than generation capacity alone.

For Scatec, the platform reflects the scale of its existing position in the country. Chief Executive Officer Terje Pilskog said: "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."

Linked to the Nexus of Water, Food and Energy initiative

The renewable energy projects covered by the investment will be developed under the energy pillar of Egypt's flagship Nexus of Water, Food and Energy initiative, which was launched at the COP27 climate conference in Sharm El Sheikh.

The EBRD-led pillar supports the delivery of private-sector renewable energy capacity, electricity-network investment, skills development and a just energy transition, according to the Bank's description of the framework.

That places the new equity stake within an existing institutional structure rather than as a standalone transaction. The energy pillar's scope extends beyond generation projects to include network investment and workforce skills, although the EBRD's announcement identifies the initial capacity additions, the 2.7 GW of solar, 900 MW of wind and 4.2 GWh of battery storage, as the portfolio's first commitments.

Scatec's profile and EBRD partnership history

Scatec ASA is a Norway-based integrated power producer specialising in renewable energy solutions. The company was founded in 2007 and has been listed on the Oslo Stock Exchange since 2014.

According to the EBRD's statement, Scatec is a long-time partner of the Bank in developing renewable energy and battery storage projects in the Bank's countries of operation, a relationship that the new Egypt-focused vehicle now extends through a direct equity holding.

The structure of the deal, with the EBRD as a minority shareholder alongside a majority commercial sponsor, reflects the Bank's stated approach of providing long-term capital as a shareholder rather than solely through lending instruments. The announcement describes the partnership as one that will "accelerate Scatec's growth ambitions across the region," in the words of the company's chief executive.

The EBRD's track record in Egypt

The investment adds to a substantial existing commitment by the Bank in Egypt. Since beginning operations in the country in 2012, the EBRD has invested more than USD 17.9 billion across 238 projects there, making it a leading institutional investor in the country, according to its own figures.

The Bank positions this track record as the foundation for the new equity investment, which it describes as the next step in supporting large-scale renewable energy in the SEMED region. The SEMED designation covers the southern and eastern Mediterranean countries where the Bank operates, and the investment vehicle is intended to facilitate renewable energy infrastructure in Egypt and across that region.

Portfolio scope: what is planned

The portfolio's initial targets, as stated by the Bank, are 2.7 GW of solar capacity, 900 MW of wind capacity and 4.2 GWh of battery energy storage in Egypt. The Bank characterises this as the portfolio "initially" supporting these additions, indicating that the vehicle may support further capacity over time. The figures make the battery storage component, 4.2 GWh, a significant part of the plan alongside the generation capacity, aligning with the transaction's framing as a combined renewable energy and battery energy storage portfolio.

The announcement does not specify a timeline for the capacity additions, the individual projects that will fall under the vehicle, or the breakdown of the USD 221 million equity commitment beyond the up-to figure. What the Bank does state is that the stake is capped at USD 221 million, that the EBRD will hold a minority position, and that Scatec ASA will remain the majority stakeholder in Egypt Renewables Holdings B.V.