AfDB Approves $184.1M for Egyptian Solar Project

Pan-African financial institution the African Development Bank (AfDB) has approved a $184.1 million financing package for a 1.1 GW solar PV project and 200 MWh battery energy storage system (BEES) in Egypt.

Approved by the AfDB Board of Directors, the Obelisk solar project is set to become the largest solar plant in Africa, with a total estimated cost of over $590 million.

“Obelisk is another landmark development […] that leverages on Egypt’s and African Development Bank’s leadership as well as commitment to harnessing the country’s renewable energy,” stated Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth, AfDB.

The financing package will cover the design, construction, operation and maintenance of the solar plant, with Egypt’s state-owned Egyptian Electricity Transmission Company set to be the sole off-taker under a 25-year power purchase agreement.

The package includes $125.5 million in financing from ordinary sources, $20 million in concessional funding the AfDB-managed Sustainable Energy Fund for Africa and $18.6 million in funding from the Canada-Africa Development Bank Climate Fund – a partnership between the AfDB and the Canadian government.

Additional financing will be sourced from a consortium of development finance institutions, including $20 million from finance mechanism the Climate Investment Funds’ Clean Technology Fund.

Set to begin operation by Q3 2026, the Obelisk project will generate an estimated 2,772 GWh of clean energy. The project is expected to mitigate annual CO₂ emissions by approximately one million tons and create 4,000 jobs during construction and 50 permanent jobs during operation.