The 1 GW Obelisk Solar Project in Southern Egypt

Updated 16th October 2025: The Obelisk project in Qena Governorate is being developed by Scatec ASA, through its special-purpose vehicle, Obelisk Solar Power. It reached financial close for about US$479 million, covering nearly 80% of its estimated US$590 million total cost. Obelisk features two phases: first phase has 561 MW solar plus the full 200 MWh battery system; second phase adds 564 MW solar. The project has a 25-year USD-denominated PPA with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee.  It expects to operate fully by Q3 2026, generate about 2,772 GWh/year, cut approximately 1 million tonnes CO₂ emissions annually, and create some 4,000 construction and 50 permanent jobs.

The development stands among the key renewable ventures featured in Egypt’s top solar power projects in development, reflecting Egypt’s strategic push to expand solar capacity, attract foreign investment, and accelerate its transition toward a low-carbon economy.

Published 12 June 2025: The African Development Bank Group (AfDB) has approved a financing package of up to $184.1 million to support the development of the Obelisk solar power project in southern Egypt, which will be the largest solar photovoltaic (PV) plant in Africa. The landmark initiative includes a 1-gigawatt solar plant and a 200 MWh battery energy storage system (BESS), designed to deliver clean, reliable energy while enhancing grid resilience.

Strategic Location and Structure

Located in Qena Governorate, the project involves the design, construction, operation, and maintenance of a solar power facility integrated with advanced energy storage. The Egyptian Electricity Transmission Company will purchase the power under a 25-year Power Purchase Agreement, ensuring long-term energy delivery to the national grid.

Robust Financing Package

The total cost of the Obelisk solar power project exceeds $590 million, with funding from multiple sources:

• $125.5 million from AfDB’s ordinary resources

• $20 million from the Sustainable Energy Fund for Africa (SEFA)

• $18.6 million from the Canada-African Development Bank Climate Fund

• $20 million from the Climate Investment Funds’ Clean Technology Fund
  Additional financing will be secured from other development finance institutions.

Scatec Commences Construction of 1.1GW Obelisk Solar PV and BESS Project in Egypt

Alignment with Egypt’s NWFE Platform

The project is part of Egypt’s Nexus of Water, Food, and Energy (NWFE) platform and has been granted a Golden License for its strategic role in addressing energy challenges. Egypt’s Minister of International Cooperation, Dr. Rania Al-Mashat, emphasized that the Obelisk project supports Egypt’s goal to reach 10GW of renewable capacity by 2030 while phasing out 5GW of fossil fuel power.

Environmental and Socioeconomic Benefits

Expected to be fully operational by Q3 2026, the Obelisk solar power project will:

• Generate 2,772 GWh annually

• Reduce CO₂ emissions by ~1 million tons per year

• Create 4,000 jobs during construction and 50 permanent roles, with focus on youth and women employment

• Help Egypt reach 42% renewable energy share by 2030

International Support and Replicability

AfDB Vice President Kevin Kariuki and Canada’s Ambassador to Egypt Ulric Shannon praised the project for enhancing energy security, economic development, and climate resilience. AfDB’s Wale Shonibare highlighted its potential for replication across Africa as a model of public-private cooperation in renewable energy.

FACT SHEET: Obelisk Solar Power Project