Egypt is set to receive a sum of US $184M approved by the African Development Bank Group (AfDB) to support the Obelisk solar photovoltaic project in Egypt’s Qena Governorate.
Set to become the largest solar power facility in Africa, the Obelisk project will feature a 1GW solar power plant alongside a 200 MWh battery energy storage system. The total investment in the project is expected to exceed US $590M.
The AfDB’s financing includes US $125.5M from its ordinary resources, complemented by US $20M in concessional funding from the Sustainable Energy Fund for Africa (SEFA), US $18.6M from the Canada-African Development Bank Climate Fund, and an additional US $20M from the Clean Technology Fund under the Climate Investment Funds initiative. Further funding will come from other development finance institutions.
READ: Nigeria to enforce ‘drill or drop’ policy to revive oil sector
Scope of work
The project will involve the design, construction, operation, and maintenance of the solar facility, which has been granted a Golden Licence under Egypt’s Nexus of Water, Food and Energy (NWFE) platform due to its strategic role in advancing the country’s energy transition.
Egypt’s Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, highlighted that the Obelisk project builds on the momentum of the NWFE programme, which has mobilised approximately US $4bn in private renewable energy investments since its launch at COP27 in 2022. The energy pillar of NWFE aims to install 10GW of renewable energy and decommission 5GW of fossil fuel capacity by 2030.
Once operational in the third quarter of 2026, the Obelisk project is expected to generate approximately 2,772 gigawatt-hours of electricity annually, cutting carbon dioxide emissions by around one million tonnes each year. It is also projected to create 4,000 jobs during the construction phase and provide 50 permanent roles.
The Egyptian Electricity Transmission Company will purchase the electricity generated under a 25-year power purchase agreement. AfDB Vice President for Power, Energy, Climate and Green Growth, Kevin Kariuki, described the initiative as a landmark project that reinforces Egypt’s renewable energy ambitions and supports its target of sourcing 42% of its electricity from renewable sources by 2030. The Obelisk project also aligns with broader continental goals, including the World Bank and AfDB’s Mission 300 programme, which seeks to provide electricity access to 300 million Africans by 2030.
