Prime Minister Mostafa Madbouly has inaugurated the first phase of the Obelisk solar power project in Qena Governorate, marking a milestone in Africa’s renewable energy landscape.
Developed by Norway’s Scatec within 13 months of signing the Power Purchase Agreement (PPA), the project represents one of the fastest global executions in the sector.
The inauguration marks a significant step in consolidating Egypt’s position as a regional leader in sustainable energy, serving as a flagship initiative under the Nexus of Water, Food, and Energy Program (NWFE), according to a statement by the Cabinet.
The first phase delivers 500 megawatts (MW) of solar capacity, integrated with 200 megawatt-hours (MWh) of Battery Energy Storage Systems (BESS), the largest of its kind on the continent.
Upon full completion in 2026, the 1,000 MW complex will span 20 square kilometers (km²) and supply electricity to approximately 1.6 million homes annually.
The project is expected to offset 1.4 million tons (mmt) of carbon emissions and save an estimated 513 million thermal units of natural gas over its 25-year lifespan, providing a cumulative economic value of approximately $5.1 billion.
Total financing for the project exceeds $600 million, backed by the European Investment Bank ($150 million), the African Development Bank ($160 million), and the European Bank for Reconstruction and Development EBRD (over $100 million).
Minister of Electricity and Renewable Energy, Mahmoud Esmat, described the project as a model of technological excellence and engineering innovation.
Terje Pilskog, CEO of Scatec, noted that the site’s rapid transition from signing to execution demonstrates the robust investment climate fostered by the Egyptian government.
The second 500 MW 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 mobilization of diversified international funds reflects a vote of confidence in Egypt’s economic trajectory.
The project aligns with the state’s strategy to increase the share of renewable energy in the national energy mix to 42% by 2030.
Furthermore, Scatec is expanding its footprint in Egypt beyond the Obelisk site, having signed a recent agreement for the 1.7 GW “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.
It is worth noting that Scatec was the first company to sign a power purchase agreement in Egypt that includes battery systems. In September 2024, it began work immediately thereafter, according to Amer.
