The Board of Directors of the African Development Bank Group has approved a financing package of up to USD 184.1 million to support Africa’s largest solar power plant.
The money is invested in the development of the Obelisk 1-gigawatt solar photovoltaic project and 200MWh battery energy storage system located in Qena Governorate in southern Egypt.
The project entails the design, construction, operation, and maintenance of a photovoltaic power plant with an integrated battery energy storage system.
The Egyptian Electricity Transmission Company will be the sole off-taker under a 25-year Power Purchase Agreement.
The project’s total cost is estimated at more than USD 590 million.
The Bank Group’s financing package includes USD 125.5 million of ordinary resources, as well as concessional funding from Bank Group-managed Special Funds the Sustainable Energy Fund for Africa (SEFA) worth USD 20 million, and the Canada-African Development Bank Climate Fund, at USD 18.6 million.
A further USD 20 million will come from the Climate Investment Funds’ Clean Technology Fund, with additional financing to be mobilized from a consortium of development finance institutions.
Under Egypt’s Nexus of Water, Food, and Energy (NWFE) platform, Obelisk has been granted a Golden License by the government, which recognizes it as a strategic initiative that will contribute to addressing Egypt’s energy constraints and advancing its energy transition.
Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, said the Obelisk solar project is another important milestone for Egypt under the energy pillar of the NWFE program.
The project, expected to be fully operational by the third quarter of 2026, will generate an estimated 2,772 gigawatt-hours of clean, reliable, and affordable energy annually to the national grid.
The battery energy storage system will help meet peak evening demand with renewable power while also mitigating the variability of solar power generation. The project is expected to reduce annual carbon dioxide (CO2) emissions by approximately one million tons and create about 4,000 jobs during construction and 50 permanent jobs during operation, with a special focus on women and youth employment.
Ambassador of Canada to the Arab Republic of Egypt Ulric Shannon said Canada was proud to support solar energy development in Egypt. This initiative is a meaningful step toward enhancing energy security and stability, with direct benefits for the Egyptian people.
The Obelisk Solar Project aligns with the African Development Bank’s Ten-Year Strategy, its New Deal on Energy for Africa, and its Country Strategy Paper for Egypt as well as SEFA’s strategic framework which aims to accelerate African countries energy transition by increasing the share of renewables and catalyzing commercial capital mobilization in the power sector.