On June 11, 2025, the African Development Bank Group approved a major financing package of up to $184.1 million to support Egypt’s Obelisk solar power initiative, a landmark project that will combine a 1-gigawatt photovoltaic plant with a 200MWh battery energy storage system. Set to become the continent’s largest solar power facility, the project will be located in the Qena Governorate in southern Egypt.
The comprehensive energy project involves the design, construction, operation, and long-term maintenance of a cutting-edge solar plant integrated with battery storage. Once completed, the Egyptian Electricity Transmission Company will serve as the exclusive off-taker under a 25-year Power Purchase Agreement, ensuring long-term energy supply and infrastructure stability.
The project carries a total estimated cost exceeding $590 million. The African Development Bank’s contribution comprises $125.5 million from its ordinary resources, complemented by $20 million from the Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-African Development Bank Climate Fund, an initiative in partnership with the Government of Canada, and an additional $20 million sourced from the Climate Investment Funds’ Clean Technology Fund. Additional support will be secured through a consortium of development finance institutions.
Recognized as a strategic national project under Egypt’s Nexus of Water, Food, and Energy (NWFE) platform, the Obelisk solar initiative has received a Golden License from the Egyptian government. This designation highlights its vital role in alleviating energy pressures and advancing the country’s transition to cleaner energy sources.
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 which has since its launch in November 2022 at COP27 in Sharm El Sheikh delivered 4.2 GW of privately financed renewable energy investments, worth about $4 billion, with the support of partners such as the Africa Development Bank. The goal of NWFE’s energy pillar is to add 10 GW of renewable energy capacity with investments of approximately $10 billion, and phase out 5 GW of fossil fuel power generation by 2030.”
The Obelisk project is projected to be fully operational by the third quarter of 2026. It is expected to deliver approximately 2,772 gigawatt-hours of clean energy annually to Egypt’s national grid. The battery storage element will play a critical role in supporting peak demand during evening hours and balancing the inherent fluctuations in solar power generation. The project is anticipated to reduce carbon dioxide emissions by around one million tons per year. In terms of employment, it is forecasted to create approximately 4,000 construction jobs and 50 permanent roles, with a particular emphasis on hiring women and youth.
Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate, and Green Growth, stated, “Obelisk is another landmark development under NWFE that leverages on Egypt’s and the African Development Bank’s leadership as well as commitment to harnessing the country’s renewable energy to enhance the resilience of the country’s energy supply to meet its fast-growing energy demand sustainably.This project also contributes to Egypt’s ambition of producing 42 percent of its power generation capacity from renewable energy sources by 2030 while spurring economic growth and reducing greenhouse gas emissions”
Ambassador of Canada to the Arab Republic of Egypt Ulric Shannon said: “Canada is 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. We are pleased to collaborate with the African Development Bank and other partners in supporting Egypt’s transition to a sustainable, low-carbon economy.”
The Obelisk Solar Project contributes to multiple strategic goals. It aligns with the African Development Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and the Country Strategy Paper for Egypt. It also supports SEFA’s objectives to accelerate the energy transition across the continent by expanding the share of renewable energy and attracting commercial investment in the power sector.
Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulation at the African Development Bank, said: “This project exploits the abundant renewable energy potential in Africa and demonstrates how strong partnerships and innovative solutions contribute to balancing three core objectives in the energy sector, namely energy security, affordability, and sustainable economic development.” He noted the project’s potential to serve as a model for similar initiatives across Africa.
