AfDB commits $184M to Africa’s largest solar and battery project in Egypt

The African Development Bank (AfDB) has approved a $184.1 million financing package for the Obelisk 1GW solar and 200MWh battery storage project in Egypt, the largest of its kind in Africa. Set in Qena Governorate, the project aims to expand clean energy access, reduce emissions, and support Egypt’s transition toward a low-carbon economy.

The project involves the complete design and development of a photovoltaic power plant, including a 200 MWh battery energy storage system. The sole off-taker is the Egyptian Electricity Transmission Company, under a 25-year power purchase agreement.

Estimated to cost more than $590 million, the project will be fully operational between July to September 2026, generating an estimated 2,772 gigawatt-hours of clean energy annually to the national grid. 

The move supports the African Development Bank’s 10-year strategy, which aims to accelerate African countries’ energy transition by increasing the share of renewables in the power sector. The project also advances Egypt’s commitment to achieving 42%generation capacity from renewable energy sources by 2030.

“The Obelisk solar project is another important milestone for Egypt under the energy pillar of the Nexus of Water, Food, and Energy (NWFE) program which has delivered 4.2 GW of privately financed renewable energy investments, worth about $4 billion,” said Dr Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation.

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 “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.”

AfDB’s contribution includes $125.5 million of ordinary resources, as well as a concessional funding of $20 million from the Sustainable Energy Fund for Africa  (SEFA). External contributors include the Canada-African Development Bank Climate Fund and the Climate Investment Funds’ Clean Technology Fund. Additional financing is to be mobilised from development finance institutions.

The project will reduce annual carbon dioxide (CO₂) emissions by approximately one million tons and create about 4,000 jobs during construction and 50 permanent jobs during operation, with a special focus on women and youth employment. The battery energy storage system will help meet peak evening demand with renewable power while also mitigating the variability of solar power generation. 

With operations expected by late 2026, the Obelisk project is set to become a renewable energy benchmark for Africa, offering a blueprint for sustainable infrastructure, job creation, and emissions reduction.