By Thuku Kariuki
In a monumental step toward sustainable energy, the African Development Bank Group (AfDB) has approved a $184.1 million financing package to propel the Obelisk 1-gigawatt (GW) solar photovoltaic project in Egypt.
Set to become Africa’s largest solar power plant, this ambitious initiative integrates a 200-megawatt-hour (MWh) battery energy storage system (BESS), marking a new era for renewable energy.
With a total project cost exceeding $590 million, the Obelisk project is a cornerstone of Egypt’s Nexus of Water, Food, and Energy (NWFE) platform. It promises to deliver clean, affordable power while driving economic and environmental progress.
Located in southern Egypt’s sun-soaked Qena Governorate, the Obelisk project involves the design, construction, operation, and maintenance of a state-of-the-art photovoltaic power plant.
The integrated BESS will ensure grid stability by storing solar energy to meet peak evening demand, addressing the intermittency of solar generation. The Egyptian Electricity Transmission Company will purchase the plant’s output under a 25-year Power Purchase Agreement, ensuring long-term reliability.
Expected to be fully operational by the third quarter of 2026, the project will generate 2,772 gigawatt-hours (GWh) of clean energy annually, powering hundreds of thousands of homes.
By reducing carbon dioxide emissions by approximately one million tons per year, Obelisk will play a pivotal role in combating climate change. Additionally, it will create 4,000 jobs during construction and 50 permanent roles during operation, prioritizing opportunities for women and youth.
The AfDB’s $184.1 million package comprises $125.5 million from its ordinary resources, $20 million from the Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-African Development Bank Climate Fund, and $20 million from the Climate Investment Funds’ Clean Technology Fund. Additional funding will be mobilized from a consortium of development finance institutions, underscoring the project’s global support.
Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, described Obelisk as a “milestone” for the NWFE program, launched at COP27 in 2022. The energy pillar of NWFE aims to add 10 GW of renewable capacity by 2030, phase out 5 GW of fossil fuel generation, and attract $10 billion in investments. Since its inception, NWFE has delivered 4.2 GW of privately financed renewable projects worth $4 billion, with the AfDB as a key partner.
The Obelisk project aligns with Egypt’s goal to generate 42% of its power from renewables by 2030 and the AfDB’s broader objectives, including its Ten-Year Strategy and New Deal on Energy for Africa.
Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth, emphasized the project’s role in harnessing Egypt’s renewable potential 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,” he said.
Canada’s Ambassador to Egypt, Ulric Shannon, highlighted the project’s significance in advancing Egypt’s low-carbon economy, stating, “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.”
Wale Shonibare, AfDB Director of Energy Financial Solutions, Policy, and Regulation, called Obelisk a model for balancing energy security, affordability, and sustainability. “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,” he said, noting its potential for replication across Africa.
Awarded a Golden License by the Egyptian government, Obelisk is recognized as a strategic initiative to address energy constraints and accelerate the nation’s energy transition. As Egypt harnesses its abundant solar resources, the Obelisk project stands as a shining example of how innovation, international collaboration, and visionary leadership can power a sustainable future for Africa and beyond.
