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:
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$125.5 million from AfDB’s ordinary resources
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$20 million from the Sustainable Energy Fund for Africa (SEFA)
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$18.6 million from the Canada-African Development Bank Climate Fund
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$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:
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Generate 2,772 GWh annually
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Reduce CO₂ emissions by ~1 million tons per year
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Create 4,000 jobs during construction and 50 permanent roles, with focus on youth and women employment
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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
| Project Name | Obelisk Solar Power Project |
|---|---|
| Location | Qena Governorate, Southern Egypt |
| Type | Solar PV + Battery Energy Storage (200MWh) |
| Capacity | 1 GW (solar) + 200 MWh (storage) |
| Expected Completion | Q3 2026 |
| Annual Generation | 2,772 GWh |
| Emissions Reduction | ~1 million tons CO₂ annually |
| Project Cost | $590+ million |
| AfDB Financing | $184.1 million total package |
| Off-taker | Egyptian Electricity Transmission Company |
| Jobs Created | 4,000 (construction), 50 (permanent) |
| Strategic Program | Egypt’s Nexus of Water, Food and Energy (NWFE) |
| Target | 42% renewable energy by 2030 in Egypt |
| Partners | AfDB, SEFA, Government of Canada, CIF |
