Africa’s Largest Solar Power Plant to Rise in Egypt with $184.1M Boost from AfDB
The African Development Bank Group (AfDB) has approved a financing package worth $184.1 million to support the construction of Africa’s largest solar power plant and battery storage system—an ambitious 1GW project known as Obelisk, located in Qena Governorate, southern Egypt.
The Obelisk solar photovoltaic project will feature an integrated 200MWh battery energy storage system, expected to be fully operational by Q3 2026. The Egyptian Electricity Transmission Company will serve as the exclusive off-taker through a 25-year Power Purchase Agreement.
The $590 million project marks a milestone under Egypt’s Nexus of Water, Food, and Energy (NWFE) platform and supports its goal of adding 10 GW of renewable capacity and retiring 5 GW of fossil fuel plants by 2030. The project has been granted a Golden License, signifying its strategic importance in Egypt’s energy transition.
AfDB’s financing includes $125.5 million in ordinary resources and $58.6 million in concessional funds from partners like the Sustainable Energy Fund for Africa (SEFA), the Canada-AfDB Climate Fund, and the Clean Technology Fund.
Dr. Rania Al-Mashat, Egypt’s Minister of Planning and Economic Development, praised the project’s alignment with COP27 goals, noting that since NWFE’s launch in 2022, it has attracted $4 billion in private renewable energy investments.
“This is another important milestone that propels Egypt toward energy resilience and sustainability,” she said.
Kevin Kariuki, AfDB’s Vice President for Power and Climate, described Obelisk as a “landmark project that demonstrates Africa’s ability to attract capital for large-scale green energy.”
The initiative will provide 2,772 GWh of affordable, clean energy annually, create approximately 4,000 jobs during construction and 50 permanent roles upon completion—prioritizing youth and women—and cut carbon emissions by an estimated one million tons per year.
Canada’s Ambassador to Egypt, Ulric Shannon, affirmed Canada’s commitment to Egypt’s clean energy transformation: “This initiative not only strengthens energy security but also delivers tangible benefits for Egyptian citizens.”
The Obelisk project aligns with AfDB’s Ten-Year Strategy and SEFA’s mission to accelerate Africa’s energy transition by unlocking commercial capital and expanding the continent’s renewable footprint.
“This is a model for balancing energy access, sustainability, and affordability,” said Wale Shonibare, AfDB Director of Energy Financial Solutions. “Its potential for replication across Africa is immense.”
