African Development Bank Approves $184M for Egypt’s Obelisk 1GW Solar Project
The African Development Bank (AfDB) has approved $184.1 million to support Egypt's Obelisk 1-gigawatt (GW) solar photovoltaic (PV) project and a 200MWh battery energy storage system. This initiative underlines Egypt's growing investment in renewable energy and its commitment to reducing carbon emissions.
Located in Qena Governorate, southern Egypt, the Obelisk project is part of the country's Nexus of Water, Food, and Energy (NWFE) platform and holds a Golden License, signaling its national strategic importance. The $590 million project is expected to be operational by Q3 2026, generating around 2,772 GWh of clean electricity annually and cutting COâ‚‚ emissions by one million tons per year.
The project will be co-financed by AfDB's ordinary capital alongside concessional funds from SEFA, the Canada-AfDB Climate Fund, and the Clean Technology Fund, with additional support from other development finance institutions. It is set to create over 4,000 jobs during construction and includes a 25-year Power Purchase Agreement with the Egyptian Electricity Transmission Company.
Though smaller than the continent's largest solar park, Benban Solar Park (1.5-1.8 GW), Obelisk is notable for integrating battery storage technology, which enhances grid stability and optimizes solar energy supply during peak demand.
This project supports Egypt's target of sourcing 42% of its power from renewables by 2030 and aligns with broader clean energy goals promoted by AfDB and international partners like the Canadian government.
Source: innovation-village.com
