The African Development Bank Group (AfDB) has approved up to $184.1 million in financing for the Obelisk Solar Project in Egypt, a landmark development set to become Africa’s largest solar power plant.
The project will feature a 1-gigawatt solar photovoltaic (PV) plant integrated with a 200 MWh battery energy storage system.
Located in the Qena Governorate of southern Egypt, the initiative encompasses the design, construction, operation, and maintenance of the entire solar-plus-storage infrastructure.
The Egyptian Electricity Transmission Company will act as the sole off-taker under a 25-year Power Purchase Agreement (PPA).
“Obelisk is another landmark development under NWFE that leverages Egypt’s and the African Development Bank’s leadership and commitment to harnessing renewable energy.
It enhances the resilience of Egypt’s energy supply to meet rapidly growing demand sustainably,”
said Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth.
Financing Structure and Strategic Support
With an estimated total cost exceeding $590 million, the AfDB’s financing package includes:
$125.5 million from its ordinary capital resources,
$20 million from the Sustainable Energy Fund for Africa (SEFA),
$18.6 million from the Canada-African Development Bank Climate Fund (a collaboration with the Government of Canada),
$20 million from the Climate Investment Fund’s Clean Technology Fund.
Additional financing is expected from a consortium of development finance institutions.
The Obelisk project is part of Egypt’s Nexus of Water, Food, and Energy (NWFE) platform and has been granted a Golden License, recognizing it as a strategic national initiative.
The project aims to support Egypt’s efforts to overcome energy shortages and transition toward a low-carbon economy.
According to Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, the project is a key milestone under NWFE’s energy pillar.
Launched at COP27 in Sharm El Sheikh in November 2022, the NWFE program has already attracted $4 billion in private investment, supporting 4.2 GW of renewable energy capacity. The platform’s overarching goals include:
Installing 10 GW of renewable energy capacity by 2030,
Retiring 5 GW of fossil fuel-based power,
Mobilizing $10 billion in total investments.
Economic and Environmental Impact
Expected to be fully operational by Q3 2026, the Obelisk project will supply approximately 2,772 GWh of clean, affordable, and reliable electricity to Egypt’s national grid each year. It is projected to:
Reduce CO₂ emissions by 1 million tons annually, and
Create around 4,000 jobs during the construction phase and 50 permanent operational jobs, with an emphasis on the employment of women and youth.
With Obelisk, Egypt strengthens its position as a regional leader in clean energy, aligning its national development goals with global climate commitments.
