Egypt Launches Africa’s Largest Solar-Battery Complex in Milestone for Green Energy
Egyptian Prime Minister Mostafa Madbouly has inaugurated the first phase of the Obelisk solar power project in Qena Governorate, unveiling Africa’s largest battery energy storage system and positioning Egypt as a regional renewable energy powerhouse.
Developed by Norway’s Scatec within just 13 months of signing the Power Purchase Agreement, the project represents one of the fastest global executions in the renewable energy sector and serves as a flagship initiative under Egypt’s Nexus of Water, Food, and Energy Program.
The first phase delivers 500 megawatts of solar capacity integrated with 200 megawatt-hours of battery energy storage systems, the largest installation of its kind on the African continent. Upon full completion in 2026, the 1,000-megawatt complex will span 20 square kilometers and supply electricity to approximately 1.6 million homes annually.
Over its 25-year lifespan, the project is expected to offset 1.4 million tons of carbon emissions and save an estimated 513 million thermal units of natural gas, providing a cumulative economic value of approximately 5.1 billion dollars. The initiative marks a significant step in consolidating Egypt’s position as a regional leader in sustainable energy.
Total financing for the project exceeds 600 million dollars, backed by a consortium of international development institutions including the European Investment Bank with 150 million dollars, the African Development Bank contributing 160 million dollars, and the European Bank for Reconstruction and Development providing over 100 million dollars. The mobilization of these diversified international funds reflects strong confidence in Egypt’s economic trajectory and investment climate.
Minister of Electricity and Renewable Energy Mahmoud Esmat described the project as a model of technological excellence and engineering innovation, while Terje Pilskog, CEO of Scatec, noted that the site’s rapid transition from signing to execution demonstrates the robust investment environment fostered by the Egyptian government. The second 500-megawatt phase is scheduled for inauguration in May 2026 to support the national grid during the peak summer demand season.
Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, highlighted that the project aligns with the state’s strategy to increase the share of renewable energy in the national energy mix to 42 percent by 2030. The initiative represents a vote of confidence in Egypt’s economic reforms and its commitment to sustainable development.
Scatec is expanding its footprint in Egypt beyond the Obelisk site, having recently signed an agreement for the 1.7-gigawatt Energy Valley solar and battery storage project in Minya governorate. Mohamed Amer, Executive Vice President of Scatec, reaffirmed that the company’s ability to move directly into construction underscores the seamless cooperation between private sector partners and the Ministry of Electricity.
Scatec was the first company to sign a power purchase agreement in Egypt that includes battery systems, beginning work in September 2024 immediately after the agreement was finalized. The success of the Obelisk project demonstrates Egypt’s capacity to attract and execute large-scale renewable energy investments while meeting aggressive timelines and technical specifications.
The inauguration marks a transformative moment for Egypt’s energy sector and establishes a benchmark for renewable energy development across Africa, showcasing the potential for rapid deployment of advanced clean energy technologies on the continent.
Source: egyptoil-gas.com
