AfDB announces $184m for solar and battery storage project in Egypt

The African Development Bank Group (AfDB) has approved a financing package worth up to $184.1m to support the development of the Obelisk solar photovoltaic project in Egypt’s Qena Governorate.

The power project is the largest solar power plant in Africa and comprises a 1GW solar plant, along with a 200 megawatt-hour (MWh) battery energy storage system.

The total estimated investment in the project will be more than $590m.

The financing package includes $125.5m from AfDB’s ordinary resources, in addition to concessional funding of $20m from the Sustainable Energy Fund for Africa (SEFA) and $18.6m from the Canada-African Development Bank Climate Fund.

An additional $20m is provided by the Clean Technology Fund under Climate Investment Funds, complemented by further investments from development finance institutions.

The Obelisk project will encompass design, construction, operation and maintenance of a photovoltaic facility.

The project has been granted a Golden Licence through Egypt’s Nexus of Water, Food and Energy (NWFE) platform due to its importance in addressing energy shortages and advancing the country’s energy transition efforts.

Egypt Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat stated: “The Obelisk solar project is another important milestone for Egypt under the energy pillar of the NWFE programme which has since its launch in November 2022 at COP27 in Sharm El Sheikh delivered 4.2GW of privately financed renewable energy investments, worth about $4bn, with the support of partners such as the Africa Development Bank.

“The goal of NWFE’s energy pillar is to add 10GW of renewable energy capacity with investments of approximately $10bn and phase out 5GW of fossil fuel power generation by 2030.”

The Obelisk project will be fully operational in Q3 2026 and is expected to produce 2,772GW of electricity annually.

It is expected to reduce CO₂ emissions by around one million tonnes each year and create 4,000 jobs during the construction phase, with 50 permanent positions expected once operational.

The Egyptian Electricity Transmission Company will purchase all generated power from the project under a 25-year agreement.

African Development Bank power, energy, climate and green growth vice-president Kevin Kariuki 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% of its power generation capacity from renewable energy sources by 2030 while spurring economic growth and reducing greenhouse gas emissions,”

In January 2025, the Mission 300 programme, an initiative launched by the World Bank and the AfDB, secured $8bn in funding pledges.

The programme aims to supply electricity to 300 million people across Africa by 2030.