$479M Boost for Egypt’s First 1GW Solar-Battery Project by AfDB, EBRD, BII

The project, to be developed by Obelisk Solar Power SAE and led by renewable energy company Scatec ASA, will be located in the Nagaa Hammadi region of Egypt.

In a monumental step towards a cleaner and more resilient energy future, a coalition of international development finance institutions has committed a combined $479.1 million to support the development of Egypt’s largest hybrid renewable energy project to date—a 1 GW solar photovoltaic (PV) plant integrated with a 200 MWh Battery Energy Storage System (BESS). The project, to be developed by Obelisk Solar Power SAE and led by renewable energy company Scatec ASA, will be located in the Nagaa Hammadi region of Egypt.

The project is not only a major advancement in Egypt’s clean energy ambitions, but also a benchmark for future dispatchable renewable energy investments across Africa and the broader Middle East and North Africa (MENA) region.

Blended Financing for a Transformational Project

The financial backing for the project comes from three key institutions:

• African Development Bank (AfDB): AfDB is contributing a total of $184.1 million, including:

  • $125.5 million in commercial loans,

  • $20 million from the Sustainable Energy Fund for Africa (SEFA),

  • $18.6 million from the Canada-African Development Bank Climate Fund, and

  • $20 million from the Clean Technology Fund of the Climate Investment Funds.

• European Bank for Reconstruction and Development (EBRD): EBRD’s support totals $173.5 million, which includes:

  • $101.9 million of this guaranteed under the European Fund for Sustainable Development Plus (EFSD+) for 18 years,

  • $6.5 million in grant funding from the EBRD Shareholder Special Fund.

• British International Investment (BII): The UK’s development finance arm is providing:

  • A $100 million concessional loan, and

  • A $15 million returnable grant, focused on making the battery storage segment more economically viable and investment-ready.

Together, these contributions represent approximately 80% of the project’s total estimated capital expenditure of $590 million, demonstrating a robust commitment from development financiers to Egypt’s green energy transformation.

Project Phasing and Infrastructure Impact

The solar power facility, which will be executed in two distinct phases, marks a strategic turning point in Egypt’s energy development:

• Phase One (Operational by H1 2026): 561 MW of solar PV capacity paired with 100 MW / 200 MWh BESS.

• Phase Two (Operational by H2 2026): Additional 564 MW of solar PV capacity.

Electricity generated from the plant will be sold under a 25-year USD-denominated Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company, secured with a sovereign guarantee.

The plant is projected to generate 3,000 GWh of clean electricity annually—enough to power hundreds of thousands of homes while displacing up to 1.4 million metric tons of CO₂ emissions per year.

Accelerating Egypt’s Climate and Energy Ambitions

The project aligns with Egypt’s goal to achieve 42% renewable energy in its power mix by 2030 and is a central component of its Nexus of Water, Food, and Energy (NWFE) Country Platform. It represents the first large-scale hybrid solar and battery storage facility in the country, setting a critical precedent for integrated clean energy models across the region.

Voices from Partners and Stakeholders

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” and emphasized its role in mobilizing multilateral partnerships and attracting private investment.

Wale Shonibare, AfDB’s Director of Energy Financial Solutions, praised the collaborative approach:

“This project exemplifies the scale of renewable energy potential across Africa and demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development.”

Iain Macaulay, Director at BII, called the project a "game-changer":

“The integration of battery storage with solar PV is a game-changer for Egypt's energy sector, providing reliable and dispatchable renewable energy and reducing reliance on fossil fuels.”

Boyd Carpenter, EBRD Managing Director for Sustainable Infrastructure, added:

“This project takes Egypt's green energy transition to another level by harnessing solar energy both day and night, thanks to battery storage. It addresses the growing demand for electricity and reduces the need to import expensive fossil fuels.”

EU’s Strategic Engagement in Egypt’s Energy Future

Stefano Sannino, Director-General of the European Commission’s Directorate for the Middle East and North Africa, highlighted the launch of the EU-Egypt Investment Guarantee for Development Mechanism, with this project representing one of its flagship collaborations. The guarantee enables EBRD and other financiers to support scalable, private-sector-friendly green investments in Egypt.

Scatec’s Milestone

Terje Pilskog, CEO of Scatec ASA, expressed pride in leading the project:

“This project marks a major milestone for Scatec. It proves our ability to deliver large-scale hybrid projects. We are proud to partner with leading development finance institutions to support Egypt’s clean energy ambitions.”

The Obelisk Solar Power project in Nagaa Hammadi is more than just a power plant—it is a pioneering blueprint for the future of integrated, sustainable energy infrastructure in Africa. By blending financial instruments, fostering multilateral cooperation, and harnessing cutting-edge technology, this initiative will not only contribute to Egypt’s energy security but also bolster global efforts to mitigate climate change and promote sustainable development.