Africa’s First Integrated Solar-Battery Plant Secures $479M Boost for Egypt’s Clean Energy Transition
The African Development Bank (AfDB), British International Investment (BII), and the European Bank for Reconstruction and Development (EBRD) have announced a joint $479.1 million financing package to support the country’s first integrated solar photovoltaic and battery storage power plant.
The pioneering 1 GW solar PV plant—combined with a 200 MWh Battery Energy Storage System (BESS)—will be developed by renewable energy leader Scatec ASA through its special purpose vehicle, Obelisk Solar Power SAE. The project is situated in the Nagaa Hammadi region and marks a major step forward in delivering clean, dispatchable energy and enhancing grid resilience in Egypt.
The AfDB will contribute $184.1 million, which includes commercial and concessional loans from its Sustainable Energy Fund for Africa (SEFA), the Canada-African Development Bank Climate Fund, and the Clean Technology Fund.
EBRD is providing up to $173.5 million in financing, supported by a first-loss guarantee from the European Fund for Sustainable Development Plus (EFSD+), along with a $6.5 million grant from its Shareholder Special Fund. BII is contributing a $100 million concessional loan and a $15 million returnable grant to subsidize the cost of battery storage and attract private investment.
The total investment represents around 80% of the $590 million required for the plant, which will be developed in two phases and operated under a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee. The first phase, delivering 561 MW of solar and 100 MW/200 MWh of battery storage, is scheduled to go live in the first half of 2026, with the second phase following later that year.
Dr. Rania A. Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, lauded the project as a landmark for clean energy in Egypt and a key pillar of the country’s Nexus of Water, Food, and Energy (NWFE) Country Platform. “This project demonstrates how innovative finance and multilateral partnerships can scale renewable energy, enhance grid resilience, and unlock private sector-led sustainable development,” she said.
The solar-battery hybrid facility is expected to generate around 3,000 GWh of clean energy annually—enough to offset 1.4 million tons of CO₂ emissions each year—helping Egypt reach its target of 42% renewable energy in its power mix by 2030.
“This is a model for Africa,” said Wale Shonibare, AfDB’s Director of Energy Financial Solutions. “It shows how innovation, partnership, and strategic investment can accelerate the continent’s clean energy transition and create lasting economic impact.”
Iain Macaulay, Head of Project Finance (Africa & Pakistan) at BII, added, “The integration of solar PV with battery storage is a game-changer for Egypt and the region, offering a reliable and sustainable energy solution that will reduce dependency on fossil fuels.”
Boyd Carpenter, EBRD Managing Director for Sustainable Infrastructure, emphasized the project’s long-term value: “This facility will not only power homes and businesses by day but extend the benefits of solar energy into the night—drastically improving reliability and supporting the country’s green transition.”
Backed by multilateral financing and strategic policy support, the Obelisk Solar Power project stands as a beacon of innovation and sustainability, potentially replicable across Africa.
