The African Development Bank (AfDB), European Bank for Reconstruction and Development (EBRD), and British International Investment (BII) have joined forces to finance the Obelisk Solar Power SAE project, a 1 GW solar photovoltaic (PV) power plant integrated with a 200 MWh Battery Energy Storage System (BESS).
This pioneering initiative will provide dispatchable clean energy, enhance grid stability, and help manage peak demand.
The project is expected to generate 3,000 GWh of renewable power annually, reducing carbon emissions by up to 1.4 million metric tons.
Strategic Financing for a Sustainable Future
The blended financing model covers 80% of the total estimated capital expenditure of $590 million, ensuring affordability and private sector participation.
The funding includes:
- AfDB’s $184.1 million package, featuring commercial loans and concessional funding.
- EBRD’s $173.5 million financing, supported by a European Fund for Sustainable Development guarantee.
- BII’s $100 million concessional loan and $15 million returnable grant, making battery storage more viable.
A Milestone in Egypt’s Energy Transition
The solar power plant, developed by Scatec, will be built in two phases, with operations starting in 2026. The energy will be sold under a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company, backed by a sovereign guarantee.
Egypt aims to achieve 42% renewable energy in its power mix by 2030, and this project is a major step toward that goal. It will reduce reliance on fossil fuels, create new investment opportunities, and set a precedent for future hybrid renewable energy projects.
Leaders Applaud the Initiative
Egypt’s Minister of Planning, Economic Development, and International Cooperation, Dr. Rania A. Al-Mashat, hailed the project as a landmark in Egypt’s clean energy transition.
“This project exemplifies the scale of renewable energy potential across Africa and demonstrates how strong partnerships and innovative solutions can advance the energy transition,” said Wale Shonibare, AfDB’s director of Energy Financial Solutions.
With global financial backing, cutting-edge technology, and ambitious sustainability goals, Egypt is positioning itself as a leader in renewable energy.
