The African Development Bank Group has approved a financing package of up to $184.1 million to support Egypt’s Obelisk project—Africa’s largest solar power initiative. The project will involve the development of a 1-gigawatt solar photovoltaic (PV) plant and a 200-megawatt-hour (MWh) battery energy storage system in the Qena Governorate, southern Egypt. The Egyptian Electricity Transmission Company will act as the sole electricity buyer under a 25-year Power Purchase Agreement.
The total project cost exceeds $590 million. The Bank’s financing includes $125.5 million from its ordinary resources, alongside concessional contributions from the Sustainable Energy Fund for Africa (SEFA) worth $20 million, the Canada-African Development Bank Climate Fund with $18.6 million, and an additional $20 million from the Climate Investment Funds’ Clean Technology Fund. Other development finance institutions will contribute to the remaining financing requirements.
The Obelisk project is part of Egypt’s Nexus of Water, Food, and Energy (NWFE) platform and has been awarded a Golden License, recognizing its strategic significance in addressing the nation’s energy needs and advancing its transition to renewable energy. This move aligns with Egypt’s broader goal of replacing fossil fuels and expanding its renewable energy infrastructure under the NWFE’s energy pillar.
Once operational by the third quarter of 2026, the Obelisk plant is expected to produce approximately 2,772 gigawatt-hours of clean energy annually. The integrated battery storage will enhance energy reliability by meeting peak demand and stabilizing solar generation. The project will cut carbon dioxide emissions by around one million tons per year and generate employment—around 4,000 construction jobs and 50 permanent positions—with emphasis on engaging women and youth.
This project supports Egypt’s goal to derive 42% of its power generation capacity from renewable sources by 2030. It also strengthens the country’s energy resilience and contributes to sustainable economic growth. According to the African Development Bank, Obelisk is a milestone that demonstrates Egypt’s leadership in renewable energy and highlights the importance of sustainable, scalable, and economically viable energy solutions across Africa.
The initiative also aligns with the African Development Bank’s strategic goals, including its Ten-Year Strategy, the New Deal on Energy for Africa, and SEFA’s mission to accelerate clean energy transitions. By showcasing strong partnerships and innovative finance models, the Obelisk project serves as a replicable blueprint for expanding renewable energy solutions across the continent while balancing the objectives of energy security, affordability, and sustainability.
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