AfDB Commits $184 Million to Africa’s Largest Solar Power Plant in Egypt

The African Development Bank Group has approved up to $184.1 million for the Obelisk solar project in Egypt, which is set to become Africa’s largest solar power plant. Located in the Qena Governorate in southern Egypt, the project will include a 1-gigawatt solar photovoltaic facility and a 200 megawatt-hour battery energy storage system.

The $590 million project will be developed under a 25-year Power Purchase Agreement with the Egyptian Electricity Transmission Company as the sole off-taker. It involves the design, construction, operation, and maintenance of the integrated solar and storage facility.

The Bank’s financing package includes $125.5 million in 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 funds will come from other development finance institutions.

Obelisk is part of Egypt’s Nexus of Water, Food, and Energy (NWFE) platform and has been awarded a Golden License by the Egyptian government, recognizing it as a strategic project supporting national energy and sustainability goals.

Once operational in the third quarter of 2026, the plant is expected to deliver around 2,772 gigawatt-hours of clean electricity each year. The battery storage system will help supply renewable power during peak evening demand and stabilize solar output.

The project is also expected to create around 4,000 construction jobs and 50 permanent positions, with a focus on including women and youth in the workforce.

Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, said “the Obelisk solar project is another important milestone for Egypt under the energy pillar of the NWFE program which has since its launch in November 2022 at COP27 in Sharm El Sheikh delivered 4.2 GW of privately financed renewable energy investments, worth about $4 billion, with the support of partners such as the Africa Development Bank.  The goal of NWFE’s energy pillar is to add 10 GW of renewable energy capacity with investments of approximately $10 billion, and phase out 5 GW of fossil fuel power generation by 2030.”

Ambassador of Canada to the Arab Republic of Egypt Ulric Shannon said: “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. We are pleased to collaborate with the African Development Bank and other partners in supporting Egypt’s transition to a sustainable, low-carbon economy.”

“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,” said Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate, and Green Growth.  “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,”