Egypt Secures $184.1 Million from African Development Bank for Continent’s Largest Solar, Battery Storage Project

The African Development Bank Group has approved a financing package of up to $184.1 million to support Egypt’s Obelisk solar energy project, a 1-gigawatt photovoltaic plant integrated with a 200MWh battery storage system, making it the largest of its kind in Africa.

Situated in Qena Governorate, southern Egypt, the project encompasses the design, construction, operation, and maintenance of the solar plant, with the Egyptian Electricity Transmission Company as the sole off-taker under a 25-year Power Purchase Agreement.

Estimated at over $590 million in total cost, the project will receive $125.5 million in ordinary resources from the Bank Group. Additional concessional funding includes $20 million from the Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-African Development Bank Climate Fund, and $20 million from the Clean Technology Fund under the Climate Investment Funds. Further financing will be sourced from a consortium of development finance institutions.

Obelisk has been granted a Golden License under Egypt’s Nexus of Water, Food, and Energy (NWFE) platform, underscoring its strategic importance in advancing the country’s energy transition.

Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, said “the Obelisk solar project is another important milestone for Egypt under the energy pillar of the NWFE program which has since its launch in November 2022 at COP27 in Sharm El Sheikh delivered 4.2 GW of privately financed renewable energy investments, worth about $4 billion, with the support of partners such as the Africa Development Bank. The goal of NWFE’s energy pillar is to add 10 GW of renewable energy capacity with investments of approximately $10 billion, and phase out 5 GW of fossil fuel power generation by 2030.”

Expected to be fully operational by Q3 2026, the project is projected to deliver 2,772 gigawatt-hours of clean and reliable electricity annually. The battery storage system will help meet evening demand peaks while stabilizing solar power supply. It is expected to reduce annual CO₂ emissions by around one million tons and create approximately 4,000 construction jobs and 50 permanent operational roles — with a focus on employment opportunities for women and youth.

“Obelisk is another landmark development under NWFE that leverages on Egypt’s and the African Development Bank’s leadership as well as commitment to harnessing the country’s renewable energy to enhance the resilience of the country’s energy supply to meet its fast-growing energy demand sustainably,” said Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate, and Green Growth. “This project also contributes to Egypt’s ambition of producing 42 percent of its power generation capacity from renewable energy sources by 2030 while spurring economic growth and reducing greenhouse gas emissions.”

Ambassador of Canada to the Arab Republic of Egypt Ulric Shannon said: “Canada is proud to support solar energy development in Egypt. This initiative is a meaningful step toward enhancing energy security and stability, with direct benefits for the Egyptian people. We are pleased to collaborate with the African Development Bank and other partners in supporting Egypt’s transition to a sustainable, low-carbon economy.”

The Obelisk Solar Project aligns with the African Development Bank’s Ten-Year Strategy, New Deal on Energy for Africa, Country Strategy Paper for Egypt, and SEFA’s strategic framework, which aims to accelerate the energy transition across the continent by scaling renewable energy and mobilizing commercial capital.

“This project exploits the abundant renewable energy potential in Africa and demonstrates how strong partnerships and innovative solutions contribute to balancing three core objectives in the energy sector, namely energy security, affordability, and sustainable economic development,” said Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulation at the African Development Bank. “It has high potential for replicability across the continent.”