Egypt is set to construct Africa’s largest solar energy and battery storage facility after securing a $184.1 million financing package from the African Development Bank (AfDB). The Obelisk project, a 1-gigawatt solar photovoltaic plant coupled with a 200-megawatt-hour battery storage system, represents a major step in Egypt’s push to transition to renewable energy and reduce reliance on fossil fuels.
Located in Qena Governorate in southern Egypt, the $590 million project has been granted a Golden License, a streamlined approval mechanism introduced in 2022 to fast-track strategic investments. The license allows developers to bypass bureaucratic hurdles by consolidating land acquisition, construction, and operational permits under a single authorization.
Egypt, which currently generates about 12% of its electricity from renewables, aims to increase that figure to 42% by 2030. The Obelisk project is a key component of the country’s Nexus of Water, Food, and Energy (NWFE) initiative, launched at COP27 in Sharm El Sheikh in 2022. Under NWFE, Egypt has already attracted $4 billion in private renewable energy investments, adding 4.2 gigawatts of capacity.
“The Obelisk solar project is another important milestone for Egypt under NWFE,” said Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation. “Our goal is to add 10 gigawatts of renewable energy capacity with $10 billion in investments while phasing out 5 gigawatts of fossil fuel power by 2030.”
The AfDB’s funding package includes:
- $125.5 million from the bank’s ordinary capital resources
- $20 million from the Sustainable Energy Fund for Africa (SEFA)
- $18.6 million from the Canada-African Development Bank Climate Fund
- $20 million from the Climate Investment Funds’ Clean Technology Fund
Additional financing will be provided by a consortium of development finance institutions, though their identities have not yet been disclosed.
“This project leverages Egypt’s renewable energy potential to enhance energy security sustainably,” said Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth. “It supports Egypt’s goal of 42% renewable energy by 2030 while reducing emissions and creating jobs.”
Once operational in late 2026, the Obelisk facility is expected to:
- Generate 2,772 gigawatt-hours of electricity annually — enough to power hundreds of thousands of homes
- Reduce 1 million tons of CO₂ emissions per year
- Create 4,000 jobs during construction and 50 permanent positions, with a focus on women and youth employment.
The integrated battery storage system will help stabilize the grid by storing excess solar energy for use during peak evening demand, addressing one of the key challenges of solar power — intermittency.
The project aligns with the AfDB’s New Deal on Energy for Africa, which seeks to expand access to affordable and sustainable power across the continent. Wale Shonibare, AfDB Director of Energy Financial Solutions, noted that the project could serve as a model for other African nations.
“This demonstrates how strong partnerships and innovative solutions can balance energy security, affordability, and sustainable development,” Shonibare said.
Canada, a key financier through its Climate Fund, also emphasized the project’s long-term benefits. Ulric Shannon, Canada’s Ambassador to Egypt, stated: “This initiative enhances energy security and stability while supporting Egypt’s transition to a low-carbon economy.”
Egypt’s Golden License, introduced under Prime Ministerial Decree №230 of 2022, has been instrumental in attracting large-scale investments by eliminating multi-agency approvals. The mechanism has already been used for several high-profile projects, including green hydrogen ventures and industrial zones.
With Obelisk now approved, Egypt is positioning itself as a renewable energy leader in Africa, setting a precedent for other nations looking to accelerate their energy transitions.