Lagos, Nigeria – The African Development Bank (AfDB) has approved a $184.1 million financing package to support the construction of the Obelisk Solar Project, a 1-gigawatt solar photovoltaic plant with 200 MWh battery energy storage, set to become Africa’s largest solar facility.
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Located in Egypt’s Qena Governorate, the project will involve the design, construction, and operation of a state-of-the-art solar plant, with the Egyptian Electricity Transmission Company as the sole off-taker under a 25-year Power Purchase Agreement. The total project cost is estimated at over $590 million.
Once operational in Q3 2026, Obelisk is expected to generate 2,772 GWh of clean electricity annually, powering the national grid while avoiding 1 million tons of CO₂ emissions each year. It will also support 4,000 construction jobsand 50 permanent roles, with a strong focus on youth and gender inclusion.
AfDB’s funding 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 financing will be mobilized from a consortium of development finance institutions.
The Obelisk Project is part of Egypt’s Nexus of Water, Food and Energy (NWFE) initiative and benefits from a Golden License granted by the government, designating it a strategic national project. Since its launch at COP27 in November 2022, NWFE has mobilized $4 billion in private renewable energy investments, delivering 4.2 GW of capacity.
“The Obelisk solar project is another major milestone in Egypt’s energy transition,” said Dr. Rania Al-Mashat, Minister of International Cooperation. “NWFE aims to add 10 GW of renewable energy and retire 5 GW of fossil-fuel-based capacity by 2030, with total investments of around $10 billion.”
According to Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth, “This landmark project highlights the Bank’s commitment to helping Egypt meet rising energy demands sustainably while contributing to the target of generating 42% of the country’s power from renewable sources by 2030.”
Canada’s Ambassador to Egypt, Ulric Shannon, noted: “Canada is proud to support this project, which strengthens Egypt’s energy security and stability while advancing a low-carbon economy.”
The project aligns with the AfDB’s Ten-Year Strategy, its New Deal on Energy for Africa, and Egypt’s Country Strategy Paper, while also fulfilling SEFA’s mandate to accelerate Africa’s clean energy transition and attract private capital into the power sector.
“This initiative showcases how partnerships and innovation can balance energy security, affordability, and sustainability,” said Wale Shonibare, AfDB’s Director for Energy Financial Solutions. “It offers a model with high replicability across Africa.”
