The African Development Bank (AfDB) has approved a $184.1 million financing package to support Egypt’s ambitious Obelisk solar power plant, set to become Africa’s largest solar energy project upon completion.

Located in the sun-rich Qena Governorate of southern Egypt, the 1-gigawatt Obelisk facility will not only supply clean energy to the national grid but also incorporate a cutting-edge 200 MWh battery energy storage system to stabilize power during peak demand hours. 

Once operational in the third quarter of 2026, the plant is expected to generate 2,772 GWh of electricity annually, offsetting around 1 million tons of CO₂ emissions each year.

The $590 million project is part of Egypt’s flagship Nexus of Water, Food, and Energy (NWFE) program and has received a “Golden License” in recognition of its strategic value. 

This initiative reflects the government’s ambition to install 10 GW of renewable capacity and decommission 5 GW of fossil fuel plants by 2030.

The AfDB’s contribution includes $125.5 million from its core funds, $20 million from the Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-AfDB Climate Fund, and another $20 million from the Clean Technology Fund. Additional financing is expected from a coalition of global development finance institutions.

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

The plant will be developed under a 25-year Power Purchase Agreement with the Egyptian Electricity Transmission Company as the sole off-taker. During construction, the project will generate up to 4,000 jobs and create 50 permanent roles, with a targeted focus on youth and female inclusion.

Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, emphasized that the Obelisk is one of several projects delivering real results under the NWFE initiative.

The project also enjoys strong international backing. “Canada is proud to support solar energy development in Egypt,” said Ulric Shannon, Canadian Ambassador to Egypt. “This initiative is a meaningful step toward enhancing energy security and stability, with direct benefits for the Egyptian people.”

Aligned with AfDB’s Ten-Year Strategy and the New Deal on Energy for Africa, Obelisk is expected to serve as a replicable model for other nations looking to harness Africa’s vast solar potential.

“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,” said Wale Shonibare, AfDB’s Director of Energy Financial Solutions. “It has high potential for replicability across the continent.”