Egypt has commenced construction on the Obelisk solar project, a $590 million hybrid solar power and battery storage initiative led by Norwegian renewable energy firm Scatec. Situated on the west bank of the Nile, the project will deliver a total capacity of 1.1 gigawatts (GW) of solar power and incorporate 200 megawatt-hours (MWh) of battery storage.
Developed in two phases, the first phase aims to generate 561 megawatts (MW) and 200 MWh of storage by mid-2026, with the second phase adding 564 MW before the end of 2026. The facility will connect to Egypt’s national grid via 220kV transmission lines.
The Obelisk project has been granted a ‘golden licence’ by the Egyptian government, streamlining administrative procedures and expediting development. Financial backing includes $120 million in equity bridge loans, with contributions of $90 million from the Arab Energy Fund and $30 million from the European Bank for Reconstruction and Development. The state-run Egyptian Electricity Transmission Company, along with a consortium comprising Kharafi National and Power Ring, signed the construction contract last month. This initiative aligns with Egypt’s broader strategy to enhance its renewable energy capacity and reduce reliance on fossil fuels.