Egypt Inaugurates First Phase of Obelisk Solar Project in Qena, Boosting Renewable Energy Capacity

Landmark Inauguration in Qena

Egyptian Prime Minister Mostafa Madbouly officially inaugurated the first phase of the Obelisk solar project in Nagaa Hammadi, Qena Governorate, on Monday, January 12, 2026. This significant event marks a major step in Egypt's transition towards a greener energy future. The initial phase of the project delivers 500 megawatts (MW) of solar capacity, integrated with 200 megawatt-hours (MWh) of battery energy storage systems.

Developed by the Norwegian company Scatec, the Obelisk project is recognized as Africa's largest hybrid solar photovoltaic (PV) plant, combining large-scale solar generation with substantial battery storage capabilities.

Project Scope and Financing

The full Obelisk solar project is designed to achieve a total solar power capacity of approximately 1.1 gigawatts (GW), complemented by a 100 MW/200 MWh battery storage system. The overall investment for the project is estimated at around $600 million.

Financing for this ambitious undertaking comes from a consortium of international institutions:

• EIB Global provided $150 million.
• The African Development Bank (AfDB) contributed $160 million.
• The European Bank for Reconstruction and Development (EBRD) supplied over $100 million.

Additional support has been provided through grants, concessional financing, and an EU NDICI guarantee, highlighting a coordinated 'Team Europe' approach to support Egypt's clean energy transition.

Strategic Importance and Environmental Impact

The Obelisk solar project is a cornerstone of Egypt's national strategy to increase the share of renewable energy in its electricity generation to 42% by 2030. It is also a flagship initiative under the country's Nexus of Water, Food, and Energy Program (NWFE).

Upon full completion, the project is expected to:

• Supply electricity to approximately 1.6 million homes annually.
• Reduce natural gas consumption by 21 million MMBTU annually.
• Cut carbon emissions by about 1.4 million tons per year.

The first phase was completed in a remarkable 13 months from the signing of the Power Purchase Agreement, making it one of the fastest-implemented renewable energy projects globally. The construction phase also generated around 5,000 job opportunities for local residents.

Future Outlook

The second phase of the Obelisk project, which will add another 500 MW of capacity, is scheduled for inauguration in May 2026. This timely expansion aims to further bolster Egypt's national grid, particularly in preparation for the peak summer demand season.