African Development Bank, EBRD, and BII Team Up to Support 1 GW Solar Power Plant in Egypt

The African Development Bank, European Bank for Development and Reconstruction (EBRD), and the British International Investment (BII) have joined forces to provide a significant financing package worth $479.1 million to Obelisk Solar Power SAE, a special purpose vehicle incorporated in Egypt, to develop a 1 GW solar photovoltaic (PV) power plant with an integrated 200 MWh Battery Energy Storage System (BESS) in the Nagaa Hammadi region. The project aims to support Egypt's energy transition and decarbonization goals, with the ultimate goal of reaching 42% of renewables in its power mix by 2030.

Key Takeaways:

• The financing package is worth $479.1 million, with the African Development Bank Group contributing $184.1 million, including $125.5 million in commercial loans and concessional funding from the Sustainable Energy Fund for Africa (SEFA) worth $20 million.
• The project will have a total estimated capital expenditure of $590 million, with a blended financing of $475.6 million corresponding to approximately 80% of the total.
• The integrated power plant will be developed by Scatec, a leading renewable energy solutions provider, and built in two phases, with the first phase aiming to begin operations in the first half of 2026 and the second phase starting in the second half of the same year.
• The project will generate approximately 3,000GWh per year of additional renewable power, enhance grid stability, manage peak demand, and reduce carbon dioxide emissions by up to 1.4 million metric tons annually.
• The project supports Egypt's energy mix diversification, increases the share of renewable energy, and reduces greenhouse gas emissions in line with the country's decarbonization goals.

Statistics:

• Total financing provided: $479.1 million
• African Development Bank Group's funding: $184.1 million
• Commercial loans from the African Development Bank Group: $125.5 million
• Concessional funding from the Sustainable Energy Fund for Africa (SEFA): $20 million
• Climate Fund contribution: $20 million
• Clean Technology Fund contribution through the African Development Bank: $20 million
• Total estimated capital expenditure: $590 million
• Blended financing: $475.6 million (approx. 80% of the total capital expenditure)
• Project capacity: 1 GW solar PV power plant with an integrated 200 MWh BESS
• Grid stability enhancement: 3,000GWh per year of additional renewable power
• Carbon dioxide emissions reduction: up to 1.4 million metric tons annually

Sources:

• African Development Bank press release
• European Bank for Development and Reconstruction (EBRD) statement
• British International Investment (BII) press release
• Scatec ASA statement
• Egyptian Electricity Transmission Company statement
• EU-Egypt Investment Guarantee for Development Mechanism launch press release
• Directorate-General for the Middle East, North Africa and Gulf of the European Commission statement