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The African Development Bank Group’s board of directors has approved up to US$184,1 million in financing for the Obelisk solar project in Egypt, which is set to become Africa’s largest solar power plant.
The project will feature a 1-gigawatt solar photovoltaic (PV) facility and a 200MWh battery energy storage system, according to the bank’s website.
Located in the Qena Governorate of southern Egypt, the project involves the design, construction, operation and maintenance of the integrated solar and battery system. The Egyptian Electricity Transmission Company will serve as the sole off-taker through a 25-year Power Purchase Agreement.
“Obelisk is another landmark development under NWFE that leverages on Egypt’s and the African Development Bank’s leadership as well as commitment to harnessing the country’s renewable energy to enhance the resilience of the country’s energy supply to meet its fast-growing energy demand sustainably,” said Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate, and Green Growth.
With a total estimated cost exceeding $590 million, the Bank Group’s financing package includes US$125,5 million from its ordinary resources, along with concessional funding from several Bank-managed sources: US$20 million from the Sustainable Energy Fund for Africa (SEFA), US$18,6 million from the Canada-African Development Bank Climate Fund (a partnership with the Government of Canada) and US$20 million from the Climate Investment Fund’s Clean Technology Fund.
Additional funding will be raised from a consortium of development finance institutions. Under Egypt’s Nexus of Water, Food, and Energy (NWFE) platform, the Obelisk solar project has been granted a Golden License, recognising it as a strategic initiative that supports Egypt’s efforts to overcome energy constraints and accelerate its clean energy transition. — Business Insider Africa
