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Egypt has reached a major milestone in its clean energy journey by securing significant funding from European and international development agencies for the Obelisk solar power and battery storage project, one of the continent’s most ambitious renewable energy initiatives.
In early January 2026, the European Investment Bank (EIB), through its development arm EIB Global, announced US$150 million in funding for the project. The announcement coincided with the opening of the first phase of the factory in Qena Governorate, located in southern Egypt, and highlighted both financial and operational progress.
The Obelisk project, developed by Norwegian renewable energy company Skatec ASA, is set to become Africa’s largest hybrid solar photovoltaic (PV) power plant combined with battery energy storage. When fully completed, the facility will provide up to 1.1 gigawatts (GW) of solar power generation, along with a 100 megawatt/200 megawatt hour (MWh) battery energy storage system. This hybrid design allows the power plant to provide stable, clean power even after sunset and during peak demand periods.
EIB’s USD 150 million investment represents strong European support for Egypt’s renewable energy strategy. The funding builds on previous funding from a consortium of development finance institutions including the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB) and British International Investment (BII). In total, these institutions provided approximately US$479 million in financing, covering nearly 80% of the project’s total estimated cost of US$590 million.
The EBRD’s involvement included both equity bridge financing and long-term project loans, which helped resolve funding gaps during the construction phase. AfDB also contributed to a significant funding package aimed at ensuring the long-term viability and sustainability of the project. This collaborative approach reflects the broader ‘Team Europe’ strategy, under which European development agencies work together to mobilize capital, share risk and provide technical expertise for strategic infrastructure projects in partner countries.
In addition to mobilizing capital, the Team Europe model strengthens project resilience through risk mitigation tools and technical assistance, improving its overall investment profile and attractiveness to private developers.
The obelisk project is closely aligned with Egypt’s national energy goals. The country has set a target of generating 42 per cent of its electricity from renewable sources by 2030, forming the basis of a broader energy transition and decarbonization agenda. Large-scale solar power projects with integrated battery storage are essential to achieving this goal, as they help manage the intermittency of renewable energy and reduce dependence on fossil fuels.
Once fully operational, the obelisk is expected to provide clean electricity to millions of homes, strengthen grid stability and reduce carbon emissions by millions of tonnes each year. The battery storage system will also enable smoother energy supply during peak hours, making the facility a vital asset to Egypt’s electricity infrastructure.
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Egyptian authorities have emphasized the wide-ranging economic and social benefits of the project. Construction and operational activities are expected to create thousands of jobs, stimulate regional economic development in Upper Egypt, and strengthen the country’s expertise in advanced renewable energy storage technologies. The presence of Prime Minister Mostafa Madbouly at the opening ceremony of the first phase underlined the government’s strong political support for accelerating the introduction of renewable energy.
European and international support plays a vital role in financing and de-risking projects, and Obelisk is a powerful example of how global cooperation can fast-track clean energy development in emerging markets. As countries around the world explore hybrid solar power and storage solutions, Egypt’s experience provides valuable lessons for aligning policy, strategic financing, and private sector participation to support sustainable and inclusive growth.
