EIB Backs Africa’s Largest Hybrid Solar Project with $150M Financing

Representational image. Credit: Canva

The European Investment Bank (EIB), through its development arm EIB Global, has announced a $150 million financing package for Egypt’s Obelisk solar photovoltaic project, coinciding with the inauguration of the plant’s first phase in Qena.

The event was attended by Egyptian Prime Minister Mostafa Madbouly; EIB Global Director General Andrew McDowell; Deputy Prime Minister for Industrial Development and Minister of Transport and Industry Kamel Al-Wazir; Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat; Minister of Electricity and Renewable Energy Mahmoud Esmat; Qena Governor Khaled Abdel Halim; EU Ambassador to Egypt Angelina Eichhorst; and Scatec CEO Terje Pilskog.

The Obelisk project, developed by Scatec, features a 1.1 GWp solar photovoltaic plant combined with a 100 MW/200 MWh battery energy storage system, making it the largest hybrid solar PV project in Africa. Electricity generated will be sold to the Egyptian Electricity Transmission Company under a long-term power purchase agreement, contributing to a more resilient and diversified power system.

The project is co-financed by the African Development Bank and, as part of a Team Europe approach, involves the European Bank for Reconstruction and Development (EBRD) and British International Investment (BII). Additional support comes through grants, concessional financing, and an EU NDICI guarantee, highlighting Europe’s role as a long-term partner in Egypt’s green energy transition.

EIB Vice-President Gelsomina Vigliotti said, “This landmark project demonstrates how strategic European financing can accelerate Egypt’s clean energy ambitions while strengthening energy security and economic resilience. By supporting the Obelisk solar project, the EIB is investing in large-scale renewable infrastructure that delivers affordable, sustainable power and reinforces our partnership with Egypt.”

Scatec CEO Terje Pilskog added, “Their support is instrumental in driving this landmark initiative forward, and we are proud to be working together to strengthen Egypt’s renewable energy future.”

Andrew McDowell, EIB Global Director General, highlighted, “The inauguration of Obelisk’s first phase shows what can be achieved when strong national ambition is matched with reliable long-term financing and effective partnerships. By supporting Egypt’s first large-scale solar project with battery storage, the EIB is helping to translate climate commitments into concrete infrastructure that delivers clean electricity, builds local capacity, and accelerates the energy transition.”

EU Ambassador to Egypt Angelina Eichhorst emphasized, “The Obelisk photovoltaic solar project is a shining example of how our Egyptian partners deliver clean, reliable energy, create skilled jobs, and advance climate action, with the EU as a strong partner.”

The Obelisk project aligns with Egypt’s target of sourcing 42% of electricity from renewable energy by 2030, while contributing to EU priorities under REPowerEU and the EU–Egypt Partnership Priorities. The project underscores the EIB’s commitment to climate action, energy security, and sustainable development across the Southern Neighbourhood.

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