After securing a financing of $184.1 million from the African Development Bank (AfDB) last week, Egypt now benefits from two new major supports, those of British International Investment (BII) and the European Bank for Reconstruction and Development (EBRD), for the development of the Obelisk photovoltaic solar project in the Qena governorate. These contributions bring the total amount of financing to $479.1 million.
According to a statement released on Monday, June 16, EBRD’s participation in the financing is estimated at $173.5 million, with $101.9 million guaranteed by the European Fund for Sustainable Development (EFSD+) over 18 years, and a $6.5 million grant from its Special Shareholders Fund. On the other hand, BII provides a concessional loan of $100 million and a repayable grant of $15 million, aimed at improving the financial viability of the battery storage system and promoting the mobilization of private investments.
This financial structure covers 80% of the estimated total project costs, amounting to $590 million. Commissioning will take place in two phases during 2026, with a 25-year power purchase agreement signed with the Egyptian Electricity Transmission Company.
“Our financing for this flagship project reflects BII’s commitment to be a pioneer in the next generation of renewable energy infrastructure to power Egypt’s sustainable future. This agreement builds on our $190 million financing for the 1.1 GW wind farm in the Gulf of Suez, highlighting our crucial role in Egypt and North Africa’s energy transition,” said Sherine Shohdy, head of BII’s Egyptian office and director of investor relations.
Located in Nagaa Hammadi, the 1.1 GW solar power plant will be supported by a 200 MWh storage system, allowing for better management of energy demand and enhanced grid stability. It is expected to generate 3,000 GWh of clean energy per year and avoid up to 1.4 million tons of CO2, contributing to decarbonization goals.
This project marks a strategic step for Egypt, which aims for 42% renewable energy in its energy mix by 2030. It also aligns with the government’s “Water-Energy-Food Nexus” initiative, launched during COP27.
