African Development Bank greenlights $184.1M to back Africa’s largest solar power facility in Egypt

The African Development Bank (AfDB) Group has approved a financing package of up to $184.1 million to back the development of the Obelisk solar project in southern Egypt.

Once completed, the project will stand as Africa’s largest solar power facility, with a capacity of 1 gigawatt. It will also feature a 200 MWh battery energy storage system to enhance grid stability and ensure a more consistent flow of renewable energy.

To be located in Qena Governorate, the Obelisk project involves the design, construction, operation, and maintenance of a large-scale solar plant integrated with energy storage. The Egyptian Electricity Transmission Company will act as the sole off-taker under a 25-year Power Purchase Agreement.

The total development cost exceeds $590 million, with the African Development Bank contributing $125.5 million from its ordinary capital resources. An additional $20 million will come from the Bank-managed Sustainable Energy Fund for Africa (SEFA), $18.6 million from the Canada-African Development Bank Climate Fund, and $20 million from the Clean Technology Fund under the Climate Investment Funds umbrella. Further funding is expected from a consortium of development finance institutions.