Scatec's Obelisk solar and battery project in Egypt could save $400 million a year in LNG imports

Scatec ASA is building the Obelisk solar and battery storage project in Egypt, expected to be Africa's largest hybrid installation when completed in mid-2026. The 1.1 GW solar facility with 200 MWh of storage will supply the Egyptian Electricity Transmission Company and could save the country up to $400 million annually in liquefied natural gas imports, according to CEO Terje Pilskog. The savings are based on an LNG price of roughly $20 per million British thermal units, compared to the cost of generating power from the solar project. The project highlights how renewables can reduce exposure to volatile fossil fuel markets, especially for developing economies like Egypt that became a net gas importer. Scatec also signed a power purchase agreement with Egypt Aluminium for a similar solar and storage project, which will help the aluminum producer meet carbon intensity requirements under the European Union's Carbon Border Adjustment Mechanism (CBAM). Across Africa, Scatec notes that smaller hybrid projects in Cameroon are already saving money compared to diesel generators.