Africa’s largest hybrid solar and battery storage project has taken a major step forward after the European Investment Bank, through its development arm EIB Global, announced $150 million in financing for Egypt’s Obelisk solar project.
The funding coincides with the inauguration of the project’s first phase in Qena Governorate and places the Obelisk development firmly among the most consequential energy investments currently underway on the continent.
The Obelisk project combines a 1.1 gigawatt-peak solar photovoltaic plant with a 100 megawatt / 200 megawatt-hour battery energy storage system. Once fully operational, it will deliver large-scale, dispatchable renewable power to Egypt’s national grid under a long-term power purchase agreement with the Egyptian Electricity Transmission Company.
The project is being developed by Norwegian renewable energy company Scatec and is designed to address one of the central challenges of solar power in emerging markets: variability. By pairing solar generation with battery storage, Obelisk is expected to supply electricity beyond daylight hours, strengthening grid stability and reducing reliance on gas-fired generation during peak demand.
EIB Global’s financing forms part of a wider co-financing structure involving the African Development Bank, the European Bank for Reconstruction and Development, and British International Investment. Additional support has been provided through grants, concessional funding, and a European Union guarantee under the EU’s Neighbourhood, Development and International Cooperation Instrument. The structure reflects a coordinated “Team Europe” approach to large-scale energy infrastructure in North Africa.
Egyptian Prime Minister Mostafa Madbouly attended the inauguration ceremony alongside senior government officials, EIB executives, EU representatives, and Scatec’s leadership. The presence of multiple state and multilateral actors underlined the project’s strategic importance for Egypt’s energy system and its international partnerships.
Egypt has set a target of generating 42 percent of its electricity from renewable sources by 2030. While the country has made significant progress in solar and wind deployment over the past decade, most large projects have fed intermittent power into the grid. Obelisk marks a shift toward utility-scale renewable generation that can offer greater reliability and flexibility.
Read Also: What is Morocco’s 500 MWp C&I rooftop solar programme and how will it work?
For Egypt, the project arrives at a time when energy security has moved back to the centre of economic policy. Rising domestic demand, currency pressures, and the need to conserve natural gas for export have increased the urgency of scaling up renewable capacity that can perform consistently across the day.
For the European Investment Bank, the Obelisk financing aligns with a broader push to support climate-focused infrastructure in neighbouring regions while strengthening energy partnerships. EIB officials have framed the project as an example of how long-term development finance can translate climate commitments into functioning infrastructure with measurable system-level impact.
Construction of the remaining phases will continue over the coming period, with the full project expected to deliver up to one gigawatt of clean power once completed. When operational, Obelisk will not only stand as Africa’s largest hybrid solar facility, but also as a test case for how storage-backed renewables can scale in energy-hungry emerging markets.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
