The African Development Bank Group’s Board of Directors has approved up to $184.1 million in financing for the Obelisk solar project in Egypt, which is set to become Africa’s largest solar power plant.
- The African Development Bank approved $184.1 million for Egypt’s Obelisk solar project.
- This project includes a 1-gigawatt solar PV facility and a 200MWh battery storage system.
- Located in Qena Governorate, its electricity will be sold under a 25-year agreement.
The African Development Bank Group’s Board of Directors has approved up to $184.1 million in financing for the Obelisk solar project in Egypt, which is set to become Africa’s largest solar power plant.
The project will feature a 1-gigawatt solar photovoltaic (PV) facility and a 200MWh battery energy storage system, according to the bank’s website.
Located in the Qena Governorate of southern Egypt, the project involves the design, construction, operation, and maintenance of the integrated solar and battery system. The Egyptian Electricity Transmission Company will serve as the sole off-taker through a 25-year Power Purchase Agreement.
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“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.
With a total estimated cost exceeding $590 million, the Bank Group’s financing package includes $125.5 million from its ordinary resources, along with concessional funding from several Bank-managed sources: $20 million from the Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-African Development Bank Climate Fund (a partnership with the Government of Canada), and $20 million from the Climate Investment Fund’s Clean Technology Fund.
Additional funding will be raised from a consortium of development finance institutions.
Under Egypt’s Nexus of Water, Food, and Energy (NWFE) platform, the Obelisk solar project has been granted a Golden License, recognizing it as a strategic initiative that supports Egypt’s efforts to overcome energy constraints and accelerate its clean energy transition.
Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, described the project as a key milestone under NWFE’s energy pillar.
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Clean energy for millions
Since its launch at COP27 in Sharm El Sheikh in November 2022, the NWFE energy program has attracted $4 billion in private investment to support 4.2 GW of renewable energy capacity.
The broader goal is to install 10 GW of renewable energy and phase out 5 GW of fossil fuel-based power generation by 2030, with total investments estimated at $10 billion.
Expected to be fully operational by the third quarter of 2026, the Obelisk project will supply approximately 2,772 gigawatt-hours of clean, affordable, and reliable electricity to Egypt’s national grid each year.
The project is projected to reduce carbon dioxide emissions by around one million tons annually and generate significant socio-economic benefits, including the creation of about 4,000 jobs during construction and 50 permanent positions during operation, with a focus on employing women and youth.
