AfDB Backs Africa’s Largest Solar Project in Egypt with $184m

The African Development Bank (AfDB) has approved a $184.1 million financing package for the Obelisk solar project in Egypt, set to become Africa’s largest solar power plant.

The 1-gigawatt photovoltaic project, with a 200MWh battery energy storage system, will be built in Qena Governorate, southern Egypt. It will be developed under a 25-year power purchase agreement with the Egyptian Electricity Transmission Company as the sole off-taker.

Total project costs are estimated at $590 million. The AfDB’s contribution includes $125.5 million in ordinary capital and $58.6 million in concessional funding from the Sustainable Energy Fund for Africa, the Canada-AfDB Climate Fund, and the Clean Technology Fund. Additional funding will be sourced from other development finance institutions.

The project is part of Egypt’s Nexus of Water, Food and Energy (NWFE) platform and has been granted a Golden License, recognising it as a strategic initiative in the country’s energy transition.

“This is a key milestone under NWFE’s energy pillar, which aims to add 10GW of renewable capacity by 2030,” said Egypt’s Minister of International Cooperation, Rania Al-Mashat.

The Obelisk plant is expected to go online by Q3 2026, generating 2,772 GWh annually and offsetting about one million tonnes of CO₂ emissions each year. Around 4,000 construction jobs and 50 permanent roles are anticipated, with a focus on youth and women.

AfDB Vice President Kevin Kariuki said the project supports Egypt’s goal of generating 42% of electricity from renewables by 2030. Canadian Ambassador Ulric Shannon called it “a meaningful step toward energy security and stability.”

AfDB officials said the project’s model could be replicated across the continent, balancing energy access, sustainability and economic development.

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