Obelisk solar project, announced to be the biggest solar energy plant across Africa, has been officially inaugurated in Egypt. This ambitious initiative includes a 1-gigawatt (GW) solar plant paired with a 200 megawatt-hour (MWh) battery energy storage system. The project is expected to enhance Egypt’s renewable energy generation capacity. It is expected to be in full service by the third quarter of 2026.
The massive project is predicted to produce enough electricity each year to meet the needs of more than 200,000 homes. It’s on track to greatly reduce harmful carbon dioxide emissions by about one million tonnes per year. The Obelisk project reflects a major commitment to sustainable energy in the area. Development wise, it’s crowing a total investment –public and private– well beyond $590 million.
Economic Impact and Job Creation
The construction phase of the Obelisk solar project alone is expected to provide about 4,000 jobs. This new wave of employment will inject nearly $400 million in economic activity into the local economy. Once up and running, the facility will provide 50 full-time jobs – a long-term economic benefit to the community that will house it.
Rania Al-Mashat, Egypt’s Minister of International Cooperation, emphasized the importance of this project. She emphasized its importance to Egypt’s overall energy agenda.
“The Obelisk solar project is another important milestone for Egypt under the energy pillar of the NWFE programme which has since its launch in November 2022 at COP27 in Sharm El Sheikh delivered 4.2GW of privately financed renewable energy investments, worth about $4bn, with the support of partners such as the Africa Development Bank.” – Rania Al-Mashat
Funding and Support
The Obelisk project has received significant financial support from a range of entities. Furthermore, the African Development Bank (AfDB) has provided $125.5 million from its ordinary resources. Concessional funding includes a phenomenal $20 million contribution from the Sustainable Energy Fund for Africa (SEFA). This is augmented with $18.6 million from the Canada-African Development Bank Climate Fund and another $20 million from the Clean Technology Fund under Climate Investment Funds.
Kevin Kariuki, AfDB Vice President, acknowledged the importance of the project in strengthening Egypt’s renewable energy sector.
“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.” – Kevin Kariuki
Environmental Benefits and Future Prospects
Aside from the major positive impact on the economy, the Obelisk solar project will have significant environmental benefits as well. Generating more clean energy will be absolutely essential to our efforts to reduce the impacts of climate change. Beyond this, it will help Egypt and the rest of Africa develop sustainably.
The Obelisk solar project has lofty ambitions, buoyed by significant fiscal backing. It is the herald of the future renewable energy projects coming to the region. Further still, it signifies Egypt’s dedication to transition itself to a more sustainable energy future and generate new jobs and economic progress.