The African Development Bank (AfDB) has approved a $184.1mn financing package to support the Obelisk Solar PV Project in Qena, southern Egypt, according to a statement from the bank on June 11. 

The solar project, the largest of its kind in Africa, involves the construction of a 1GW solar power plant and an energy storage system with a capacity of 200 MWh. The project is part of Egypt’s NWFE (Nexus of Water, Food and Energy) platform, and has been awarded a golden licence recognising its strategic importance.

The total project cost exceeds $590mn. It will be funded from AfDB’s own resources ($125.5mn), Sustainable Energy Fund for Africa (SEFA) ($20mn), Canada-African Development Bank Climate Fund ($18.6mn), and Clean Technology Fund (CTF) ($20mn). Additional funds are also expected from a consortium of development finance institutions. 

The Egyptian Electricity Transmission Company will be the sole energy buyer under a 25-year Power Purchase Agreement (PPA).

Rania Al-Mashat, Egypt’s Minister of Planning and Economic Development, said the project aligns with Egypt’s goal to add 10 GW of renewable energy and phase out 5 GW of fossil-fuel generation by 2030. Once operational by Q3 2026, the plant is expected to generate 2,772 GWh/year of clean, affordable, and reliable electricity. The battery storage system will help meet evening peak demand and stabilise solar power output.

The project is expected to reduce carbon emissions by 1mn tonnes annually. It will create around 4,000 jobs. 

Kevin Kariuki, AfDB Vice President, stated that this project supports Egypt’s goal of producing 42% of electricity from renewable sources by 2030 and boosts energy resilience.