Africa is set to host its largest solar power plant yet, following the approval of a $184.1 million financing package by the Board of Directors of the African Development Bank Group. The funding will support the development of the Obelisk 1-gigawatt solar photovoltaic project, including a 200MWh battery energy storage system, in Qena Governorate, southern Egypt.
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More than just a power plant, Obelisk represents a critical step forward in Egypt’s and Africa’s broader journey toward clean, reliable, and sustainable energy. Once completed, the project will generate an estimated 2,772 gigawatt-hours of electricity annually, enough to power millions of homes and reduce carbon dioxide emissions by nearly one million tons each year. The inclusion of battery storage technology is particularly significant, as it will ensure stable energy supply during peak evening hours and minimize disruptions caused by the variability of solar power.
With a projected total cost exceeding $590 million, the Obelisk project brings together a blend of conventional and concessional financing. The African Development Bank is providing $125.5 million in ordinary resources and an additional $58.6 million through various special funds. These include $20 million from the Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-African Development Bank Climate Fund—a partnership between the Bank and the Government of Canada—and another $20 million from the Clean Technology Fund under the Climate Investment Funds umbrella. The remaining funding will come from a consortium of development finance institutions, demonstrating the strong global confidence in the project.
Egypt’s commitment to a clean energy future has been further underscored through the inclusion of Obelisk under the country’s Nexus of Water, Food, and Energy (NWFE) platform. The project has been granted a Golden License, identifying it as a strategic initiative vital to Egypt’s national development priorities. Launched in 2022 at COP27 in Sharm El Sheikh, the NWFE platform has already attracted more than $4 billion in renewable energy investments. According to Egypt’s Minister of Planning, Economic Development and International Cooperation, Dr. Rania Al-Mashat, the energy component of NWFE aims to add 10 gigawatts of renewable energy capacity and decommission 5 gigawatts of fossil-fueled generation by 2030.
The social and economic benefits of the Obelisk project are expected to be just as far-reaching as its environmental impact. During construction, the project will create approximately 4,000 jobs, and once operational, it will provide 50 permanent roles. Special attention is being given to ensuring that women and youth are included in this workforce, supporting Egypt’s broader social inclusion and employment goals.
Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, highlighted the project as a hallmark of regional collaboration and innovation. He emphasized that Obelisk will not only help Egypt meet its target of generating 42 percent of its electricity from renewables by 2030, but will also serve as a model for how public-private partnerships can drive sustainable development across Africa.
The project has also received praise from international partners, including Canada. Ulric Shannon, the Canadian Ambassador to Egypt, called the initiative a meaningful stride toward energy security and sustainability. “Canada is proud to support solar energy development in Egypt,” he said, adding that the collaboration reflects a shared commitment to advancing low-carbon economies.
Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulation at the African Development Bank, described the Obelisk project as a demonstration of how Africa can harness its abundant solar resources to address the critical challenges of energy access, affordability, and environmental sustainability. According to Shonibare, the project’s design and financing model make it highly replicable across the continent, offering a roadmap for future investments in large-scale renewable energy infrastructure.
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Set to become operational by the third quarter of 2026, the Obelisk solar project is more than just an engineering achievement. It’s a symbol of Africa’s growing capacity to lead in the global energy transition—powered by partnerships, driven by innovation, and rooted in a shared vision for a sustainable future.
