According to an official press statement, the African Development Bank Group (AfDB) has authorized a historic financing package worth up to $184.10 million to assist with the construction of Egypt’s largest solar energy and battery storage project.
The money will be used for the Obelisk 1-gigawatt (GW) solar photovoltaic (PV) project in the Qena Governorate of Upper Egypt, which will be combined with a 200 megawatt-hour (MWh) battery energy storage system. The project, which will cost more than $590 million in total, is expected to boost grid stability and storage capacity while greatly increasing Egypt’s capacity for renewable energy.
The project includes designing, building, running, and maintaining a cutting-edge photovoltaic power plant that is combined with a battery energy storage system (BESS). It is expected to emerge as a leading example for the widespread use of sustainable energy throughout Africa.
Under a 25-year power purchase agreement (PPA), the Egyptian Electricity Transmission Company (EETC) has been chosen as the project’s only off-taker, guaranteeing long-term energy dependability and financial viability.
In addition to $20 million in concessional funding from the bank’s Sustainable Energy Fund for Africa (SEFA), AfDB’s financing consists of $125.50 million from its regular capital resources. The remainder is derived from Special Funds maintained by the AfDB with the goal of expediting energy access and transition throughout the continent.
In addition to creating a precedent in Egypt, the Obelisk project demonstrates Africa’s growing ability to take the lead in developing cutting-edge renewable energy solutions. The continent is making significant progress toward a future that is both energy-secure and climate resilient thanks to investments made in scalable, long-term initiatives by organizations like AfDB and SEFA.
