The African Development Bank Group (AfDB) has approved up to $184.1 million in financing for the Obelisk solar power project in Egypt—set to become the largest solar installation on the African continent.
The ambitious project, located in Qena Governorate in southern Egypt, will feature a 1-gigawatt solar photovoltaic (PV) facility and a 200-megawatt-hour battery energy storage system. According to the AfDB, the development involves the full design, construction, operation, and maintenance of the integrated solar and storage infrastructure. The Egyptian Electricity Transmission Company will be the sole off-taker under a 25-year Power Purchase Agreement.
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With an estimated total cost exceeding $590 million, the Obelisk project is expected to significantly boost Egypt’s energy security, reduce emissions, and strengthen the country’s clean energy transition. It has been granted a Golden License—a designation reserved for strategic national projects—under Egypt’s Nexus of Water, Food, and Energy (NWFE) platform.
“This is another landmark development under NWFE that leverages both Egypt’s leadership and the African Development Bank’s commitment to renewable energy,” said Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth. “It will strengthen the resilience of Egypt’s power supply in a sustainable manner.”
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The financing package includes $125.5 million from the AfDB’s ordinary resources, supplemented by concessional funding from several sources managed by the Bank. These include $20 million from the Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-African Development Bank Climate Fund—a partnership with the Canadian government—and $20 million from the Climate Investment Fund’s Clean Technology Fund. Additional funding will be mobilised from a consortium of international development finance institutions.
Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, welcomed the Obelisk project as a “key milestone” in the energy pillar of the NWFE initiative, which was launched during the COP27 climate summit in Sharm El Sheikh in 2022.
“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,” said Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulation at the African Development Bank. “It has high potential for replicability across the continent.”
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Powering progress with clean energy
The Obelisk solar plant is projected to become operational by the third quarter of 2026 and will supply roughly 2,772 gigawatt-hours of clean electricity annually to Egypt’s national grid. This is expected to prevent approximately one million tonnes of carbon dioxide emissions each year.
Beyond its environmental benefits, the project promises substantial socio-economic gains. During construction, it will create around 4,000 jobs, and once operational, it will offer at least 50 permanent roles—with a strong emphasis on recruiting women and young people.
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The Obelisk project forms part of Egypt’s broader NWFE energy strategy, which aims to install 10 gigawatts of renewable energy capacity and decommission 5 gigawatts of fossil fuel-based power by 2030. The programme has already attracted more than $4 billion in private investment toward developing 4.2 GW of clean energy since its inception.
With global momentum behind climate action, the Obelisk solar project stands as a major step forward for Africa’s energy transformation—one that blends environmental responsibility with long-term economic opportunity.
