The African Development Bank (AfDB) has approved a significant financing package of $184.1 million to support Egypt’s ambitious Obelisk 1-gigawatt (GW) solar photovoltaic (PV) project and 200MWh battery energy storage system, reinforcing the country’s deepening commitment to renewable energy. While notable, the Obelisk project follows in the footsteps of Egypt’s landmark Benban Solar Park in Aswan, which remains the continent’s largest with a capacity between 1.5GW and 1.8GW.
Set in Qena Governorate, southern Egypt, the Obelisk project will include the design, construction, and long-term operation of a solar PV plant equipped with energy storage, under a 25-year Power Purchase Agreement with the Egyptian Electricity Transmission Company.
Estimated at over $590 million, the Obelisk project will be co-financed by AfDB’s ordinary capital ($125.5 million), and concessional contributions from SEFA ($20 million), the Canada-AfDB Climate Fund ($18.6 million), and the Clean Technology Fund ($20 million). Additional funding will be sourced from development finance institutions.
The Obelisk project forms part of Egypt’s Nexus of Water, Food, and Energy (NWFE) platform and has been granted a Golden License, designating it as a strategic initiative with national importance. It is projected to be operational by the third quarter of 2026, delivering around 2,772 GWh of clean electricity annually, reducing CO₂ emissions by 1 million tons per year, and creating over 4,000 jobs during construction.
Egypt’s Minister of International Cooperation, Dr. Rania Al-Mashat, underscored the role of Obelisk in advancing the NWFE energy pillar, which aims to add 10GW of renewable energy capacity by 2030 and retire 5GW of fossil fuel power.
Although Obelisk does not surpass Benban in scale, it highlights Egypt’s broader strategy to diversify and decentralize renewable energy capacity. The integration of battery storage in Obelisk is particularly noteworthy, enhancing grid stability and optimizing solar energy availability during peak hours.
According to Kevin Kariuki, AfDB VP for Power and Energy, the project aligns with Egypt’s target of sourcing 42% of its power from renewables by 2030 and with AfDB’s broader strategy to promote sustainable growth through clean energy.
The Canadian government, a co-financier, reaffirmed its support for Egypt’s energy transition. Ambassador Ulric Shannon noted that the Obelisk project will improve energy security and economic opportunity for Egyptians, while showcasing international cooperation on climate action.
Egypt’s Expanding Solar Energy Footprint
The Obelisk Solar Project builds on Egypt’s growing commitment to renewable energy, particularly solar power. Over the last decade, the country has attracted significant local and international investment in solar infrastructure. Notable solar energy projects in Egypt include:
- Benban Solar Park (Aswan):
Widely regarded as one of the largest solar installations in the world, Benban Solar Park has a capacity ranging between 1.5 GW and 1.8 GW. Spanning 37 square kilometers and housing 41 solar power plants, it was developed with support from global investors including the International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD). - Kom Ombo Solar Plant (Aswan):
With a planned capacity of 200 MW, this project is spearheaded by ACWA Power. It is expected to supply power to approximately 130,000 homes, with financial backing from IFC and EBRD. - Zaafarana Renewable Energy Complex (Red Sea Coast):
A hybrid hub with both wind and solar power components, this complex supports Egypt’s broader transition to clean energy along its eastern corridor. - Gulf of Suez Hybrid Projects:
As part of Egypt’s Integrated Sustainable Energy Strategy (ISES), the Gulf of Suez region hosts several renewable initiatives combining solar and wind technologies aimed at achieving 42% renewable energy share by 2030. - Infinity 50 Solar Plant (Benban):
The first large-scale solar plant completed within the Benban complex, Infinity 50 has a capacity of 64 MW. It was developed by Infinity Solar in collaboration with German engineering firm ib vogt.
These projects demonstrate Egypt’s leadership in harnessing solar energy and reaffirm the country’s role as a renewable energy hub in Africa and the Middle East.
