The European Bank for Reconstruction and Development (EBRD) plans to mobilise $192 million for Scatec’s 900-megawatt Shadwan wind farm in Egypt, adding development-finance backing to a $1 billion project that could strengthen the country’s renewable power capacity and reduce pressure on its fuel-dependent electricity system. The proposed financing, which remains subject to approval by the EBRD board, would support construction and operation of the wind farm at Ras Shukeir in the Red Sea governorate.
The project is being developed by Norwegian renewable energy company Scatec and is designed to supply electricity to Egypt’s national grid under a 25-year power purchase agreement with the Egyptian Electricity Transmission Company (EETC), signed in June 2025. Scatec said the agreement was an important step towards advancing the project, with further development and financial close required before construction.
The EBRD financing is expected to benefit from a first-loss guarantee under the European Fund for Sustainable Development Plus (EFSD+) Hi-Bar guarantee programme. Such guarantees are intended to reduce risks for investors in projects where large capital requirements, emerging-market conditions or long investment horizons can otherwise constrain private financing.
For Egypt, the importance of Shadwan extends beyond the addition of 900 MW of generation. The project forms part of a broader strategy to attract private capital into renewable energy while reducing the electricity sector’s exposure to imported fuels and foreign-exchange pressures. Egypt’s updated energy strategy targets renewables accounting for more than 42% of the electricity mix by 2030 and more than 60% by 2040.
That transition requires not only new generation but also investment in transmission infrastructure. Egyptian authorities have been expanding substations, transmission lines and grid capacity to accommodate increasing volumes of solar and wind power. Between July 2024 and July 2025, the government said it added 11 ultra-high-voltage substations with a combined capacity of 4,570 MVA, alongside hundreds of kilometres of new transmission infrastructure.
The location of Shadwan is also commercially significant. Ras Shukeir, on the Red Sea, is one of Egypt’s strongest wind-resource areas and forms part of the Gulf of Suez corridor where several large-scale renewable projects are being developed. Egypt’s geography gives it access to strong wind resources along the Red Sea as well as high solar irradiation across its desert regions, creating conditions for utility-scale renewable generation.
The financing structure illustrates the increasingly important role of development finance institutions in making large renewable projects commercially viable in Africa. Rather than relying entirely on government balance sheets, Egypt has increasingly used long-term power purchase agreements, guarantees and concessional or blended financing to attract international developers and lenders.
The Shadwan project is linked to Egypt’s Nexus of Water, Food and Energy (NWFE) programme, whose energy pillar is designed to support the development of privately owned renewable capacity. The programme aims to facilitate investment while linking energy transition with wider economic and development priorities.
Scatec’s expanding Egyptian portfolio demonstrates how the country is becoming a major market for large-scale renewable projects. The company has already advanced its 1.1 GW Obelisk solar and battery-storage project, which combines 1.1 GW of solar capacity with 200 MWh of battery storage. The project is designed to supply electricity to EETC under a 25-year US-dollar-denominated power purchase agreement.
The first phase of Obelisk reached commercial operation earlier in 2026, while the completed project is expected to deliver more than 3,000 GWh of electricity annually and provide grid-support benefits through its battery system.
Scatec is also developing the Dandara solar project for Egypt Aluminium Company, while its wider Egyptian pipeline includes large-scale solar, wind and battery-storage investments. In January 2026, the company signed another major agreement with EETC covering 1.95 GW of solar capacity and 3.9 GWh of battery storage, underscoring the scale of the investment pipeline developing around Egypt’s electricity transition.
For Egypt, the expansion of renewable generation has implications for public finances as well as climate policy. Greater renewable generation can reduce the need for imported fossil fuels, particularly during periods of high electricity demand, potentially easing pressure on foreign-exchange reserves. The Egyptian government has explicitly linked renewable expansion with reducing fuel imports and conserving foreign currency.
The challenge is ensuring that generation capacity is matched by transmission investment, reliable offtake arrangements and financing structures that remain sustainable for the state and electricity sector. Large renewable projects ultimately depend on the financial health of utilities and the credibility of long-term contractual arrangements.
For the wider African energy market, Shadwan offers another example of how international development finance can help mobilise private capital for large-scale renewable infrastructure. The continent faces a substantial energy investment deficit, while governments are under pressure to expand electricity supply without locking economies into increasingly expensive fossil-fuel infrastructure.
Egypt’s approach also has potential regional implications. Its growing renewable capacity, geographical position and planned investments in electricity interconnections and green hydrogen could strengthen its role in emerging African and Mediterranean energy markets. The economic value of that position will depend on whether infrastructure investment can keep pace with generation growth.
The immediate milestone for Shadwan is the EBRD board decision and subsequent financing and construction arrangements. If those steps are completed, the 900 MW project would become another significant addition to Egypt’s rapidly expanding renewable pipeline. More broadly, its progress will provide a measure of whether blended finance and private-sector participation can deliver the scale of clean-energy investment required to meet Egypt’s 2030 and 2040 targets.
