Egypt Breaks Ground: Africa’s Largest Solar + Storage Project Powers Up with $184 Million Boost
Egypt is poised to make a colossal leap in renewable energy leadership. The African Development Bank (AfDB) has greenlit a pivotal $184.1 million financing package for the landmark Obelisk project – a groundbreaking 1-gigawatt (GW) solar photovoltaic plant paired with a cutting-edge 200MWh battery energy storage system. Set to rise in Qena Governorate, Southern Egypt, this won’t just be the nation’s biggest solar venture; upon completion, it will stand as Africa’s largest integrated solar power and storage facility.
This transformative project encompasses the entire lifecycle – design, construction, operation, and maintenance – of the massive solar plant and its integrated battery system. For a quarter-century, the Egyptian Electricity Transmission Company will be the sole off-taker of the clean energy produced under a long-term Power Purchase Agreement.
Unprecedented Scale and Impact:
Obelisk represents a total investment exceeding $590 million. The AfDB’s substantial backing combines $125.5 million from its ordinary capital resources, $20 million from the Sustainable Energy Fund for Africa (SEFA), and $18.6 million from the Canada-African Development Bank Climate Fund. Further bolstering the project is an additional $20 million from the Climate Investment Funds’ Clean Technology Fund, with more funding anticipated from a consortium of development finance institutions. This multi-source financing underscores the project’s strategic importance and the powerful international coalition supporting Egypt’s energy ambitions.
Scheduled for full operation by the third quarter of 2026, Obelisk is projected to generate a staggering 2,772 gigawatt-hours of clean, reliable, and affordable energy annually for the national grid. Crucially, the integrated 200MWh battery system will store solar energy generated during peak daylight hours, enabling dispatch during high evening demand and mitigating solar variability. This dual approach ensures grid stability and maximizes renewable utilization. Environmentally, the project is a game-changer, expected to slash annual carbon dioxide (CO2) emissions by approximately one million tons. Economically, it promises significant job creation – around 4,000 positions during construction and 50 permanent roles during operation, with dedicated focus on opportunities for women and youth.
A Flagship for Egypt’s NWFE Vision:
Obelisk stands as a cornerstone of Egypt’s Nexus of Water, Food, and Energy (NWFE) platform, recognized as a national priority through its prestigious “Golden License.” Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, emphasized its strategic role: “The Obelisk solar project is another important milestone under the energy pillar of NWFE… Since its launch at COP27 in Sharm El Sheikh, NWFE’s energy pillar has already delivered 4.2 GW of privately financed renewable energy investments, worth about $4 billion, with partners like the AfDB. Our goal remains adding 10 GW of renewable capacity ($10 billion investment) and phasing out 5 GW of fossil fuel generation by 2030.”
Leaders Championing a Sustainable Future:
The project embodies a shared commitment to Egypt’s energy transition:
- Kevin Kariuki, AfDB VP for Power, Energy, Climate: Called Obelisk a “landmark development under NWFE,” highlighting how it “leverages Egypt’s and the AfDB’s leadership to harness renewable energy, enhance energy supply resilience sustainably, and directly support Egypt’s goal of 42% renewable generation by 2030 – driving economic growth while cutting emissions.”
- Ulric Shannon, Canadian Ambassador to Egypt: Expressed pride in supporting Egypt’s solar development, stating this initiative “enhances energy security and stability, with direct benefits for the Egyptian people,” and reaffirmed Canada’s commitment to collaborating on Egypt’s “sustainable, low-carbon economy transition.”
- Wale Shonibare, AfDB Director of Energy: Stressed the project’s continental significance, noting it “exploits Africa’s abundant renewable potential” and demonstrates “how strong partnerships and innovation balance energy security, affordability, and sustainable development,” adding it has “high potential for replicability across Africa.”
Aligning with Broader Ambitions:
The Obelisk Solar Project powerfully aligns with Egypt’s 2030 target of achieving 42% renewable energy generation capacity. It also resonates deeply with the AfDB’s strategic frameworks, including its Ten-Year Strategy and New Deal on Energy for Africa, as well as SEFA’s mission to accelerate Africa’s energy transition and mobilize commercial capital for the power sector.
The Path Forward:
More than just a power plant, Obelisk is a beacon illuminating Africa’s renewable energy future. By combining massive-scale solar generation with essential storage technology, underpinned by international finance and national strategy, Egypt is forging a path toward a cleaner, more secure, and prosperous energy landscape – setting a transformative example for the entire continent.
