The European Investment Bank ( EIB ), through its development arm EIB Global, has signed a US$150 million financing for the Obelisk solar photovoltaic project in Egypt, during the inauguration of the first phase of the plant in Qena Governorate.

The Obelisk project consists of a 1.1-gigawatt ( peak ) solar photovoltaic plant combined with a 100-megawatt/200-megawatt-hour battery energy storage system, developed by Scatec, making it the biggest hybrid solar PV project in Africa. The electricity will be sold to the Egyptian Electricity Transmission Company under a long-term power purchase agreement.

The project is being co-financed with the African Development Bank, and, following a Team Europe approach, also involves the European Bank for Reconstruction and Development ( EBRD ) and British International Investment ( BII ). Additional support is provided through grants, concessional financing, and an EU NDIC ( Neighbourhood, Development and International Cooperation Instrument ) guarantee.

The inauguration was attended by Egyptian Prime Minister Mostafa Madbouly and EIB Global director general Andrew McDowell.

“By supporting the Obelisk solar project, the EIB is investing in large-scale renewable infrastructure that delivers affordable, sustainable power, supports decarbonization, and reinforces our partnership with Egypt under the European Union’s Global Gateway and the EU-Egypt Strategic Partnership,” says EIB vice president Gelsomina Vigliotti.

“Scatec is very pleased to welcome the European Investment Bank as a partner in the Obelisk project. Their support is instrumental in driving forward this landmark initiative, and we are proud to be working together to strengthen Egypt’s renewable energy future,” says Scatec CEO Terje Pilskog.

The Obelisk project supports Egypt’s target of reaching 42% renewable energy in electricity generation by 2030, while contributing to EU priorities under REPowerEU and the EU-Egypt Partnership Priorities.