Wed. Jul 16th, 2025

African Development Bank Commits $184.1 Million to Egypt’s Massive Solar Energy Project

The African Development Bank has approved a substantial $184.1 million financing package for Egypt’s ambitious Obelisk solar project, which is set to become Africa’s largest solar installation upon completion. The comprehensive project includes a 1.1 GW solar photovoltaic system and a 200 MWh battery energy storage system, with a total estimated cost exceeding $590 million.

Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth at AfDB, described Obelisk as “another landmark development” that showcases Egypt’s leadership in harnessing renewable energy across the continent. The project is scheduled to begin operations by the third quarter of 2026, with Egypt’s state-owned Egyptian Electricity Transmission Company serving as the sole off-taker under a 25-year power purchase agreement.

The financing package combines resources from multiple sources, including $125.5 million from ordinary funding, $20 million from the AfDB-managed Sustainable Energy Fund for Africa, and $18.6 million from the Canada-Africa Development Bank Climate Fund. Additional support comes from a consortium of development finance institutions, including $20 million from the Climate Investment Funds’ Clean Technology Fund.

Expected to generate approximately 2,772 GWh of clean energy annually, the Obelisk project will mitigate roughly one million tons of CO₂ emissions per year while creating 4,000 construction jobs and 50 permanent operational positions.

Source: energycapitalpower.com

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