Faith Nyasuguta
The African Development Bank (AfDB) has approved a major financing package of $184.1 million to support Egypt’s Obelisk solar project- destined to become Africa’s largest solar photovoltaic (PV) power plant with an integrated 200 MWh battery storage system. The funding was approved by the bank’s Board on June 11, 2025, marking a milestone in the continent’s clean energy ambitions.
Situated in Qena Governorate, southern Egypt, the Obelisk plant comprises a 1 GW solar PV array paired with a 200 MWh battery energy storage system (BESS). The Egyptian Electricity Transmission Company will purchase all output via a 25-year Power Purchase Agreement. The project is designed to generate approximately 2,772 GWh of clean electricity annually, significantly boosting Egypt’s energy resilience.
“The Obelisk project will play a critical role in meeting Egypt’s surging electricity demand sustainably,” said Kevin Kariuki, AfDB Vice President for Power, Energy, Climate & Green Growth. Already under Egypt’s Nexus of Water, Food & Energy (NWFE) initiative, the project has earned a coveted “Golden License,” cementing its strategic importance to national clean energy transition goals.
With a total projected cost exceeding $590 million, the Obelisk initiative brings together multiple funding sources. The AfDB contributes $125.5 million from its ordinary resources; additional concessional financing includes $20 million from the Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada- “African Development Bank Climate Fund- supported by Canada- and $20 million from the Climate Investment Funds’ Clean Technology Fund. A consortium of development finance institutions will provide the remainder  .
Dr. Rania Al-Mashat, Egypt’s planning minister, said the project is a cornerstone of the NWFE platform, launched at COP27 in Sharm El-Sheikh. NWFE aims to fast-track 10 GW of renewable energy capacity and phase out 5 GW of fossil-fuel generation by 2030, leveraging $4 billion in private investment so far. Wale Shonibare, AfDB Director of Energy Financial Solutions, noted Obelisk’s “potential for replication across Africa,” offering a template for large-scale renewable integration.
Set to begin operations by the third quarter of 2026, Obelisk is expected to create 4,000 construction jobs and 50 permanent positions, with a strong focus on youth and women’s employment. Beyond economic gains, it will cut approximately 1 million tonnes of CO2 emissions annually, helping Egypt achieve a target of 42% renewable energy by 2030.
Analysts say Obelisk represents a convergence of necessity and opportunity. Egypt’s silencing of diesel peaker plants, grid reliability challenges, and climate commitments make such infrastructure urgent. A robust energy storage system ensures the plant can supply consistent power, even after sunset, smoothing intermittency issues.
Attracting the AfDB’s largest-ever solar loan ($184.1 million), the Obelisk project highlights the bank’s ten-year strategy to accelerate clean energy access and resilience in Africa. For Egypt, it signals both a commitment to decarbonizing its power sector and a readiness to become a regional green energy hub.
As the African continent races toward a cleaner energy future, Obelisk stands tall as a bold and hopeful beacon- proof that with strategic collaboration and financing, Africa’s brightest days may yet lie ahead.
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