Egypt inaugurates Phase 1 of Obelisk Solar Power Plant in Qena with $600 million investments

 

CAIRO- 12 January 2026: Egyptian Prime Minister Dr. Mostafa Madbouly inaugurated on Monday the first phase of the Obelisk Solar Power Plant project in Nagaa Hamadi, Qena Governorate (Upper Egypt)

 

The plant has an initial capacity of 500 megawatts, along with a battery energy storage system capable of storing 200 megawatt-hours. Developed and constructed by the Norwegian company Scatec, the project will ultimately reach a total solar power capacity of 1,000 megawatts.

 

The project is part of the Ministry of Electricity and Renewable Energy’s urgent plan and falls under the World of Water, Food, and Energy (NWFE) program. It supports the state’s strategy to increase the share of renewable energy to 42% of Egypt’s energy mix by 2030 and to enhance reliance on clean and sustainable energy sources.

 

The project was completed in a record time of just 13 months from the signing of the power purchase agreement (PPA), reflecting efficient execution and rapid implementation. 

 

Construction activities generated approximately 5,000 job opportunities for residents of Nagaa Hamadi and Qena Governorate, in line with the state’s directives to maximize development investments in Upper Egypt.

 

Covering an area of more than 20 square kilometers, the project represents one of Egypt’s largest renewable energy developments. 

 

During the inauguration event, Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, stated that the project’s total financing exceeds $600 million. Funding was provided by several international institutions, including the European Investment Bank ($150 million), the African Development Bank ($160 million), and the European Bank for Reconstruction and Development (over $100 million), in addition to other financing partners.

 

The project is expected to supply electricity to approximately 1.6 million homes nationwide and achieve cumulative savings in natural gas consumption estimated at 513 million British thermal units (BTUs) over its 25-year operational life, representing an economic value of approximately $5.1 billion.

 

Scatec was the first company in Egypt to sign a Power Purchase Agreement (PPA) incorporating a battery energy storage system, in September 2024. The company began work immediately and, through close cooperation with the Egyptian government and its partners, moved directly from contract signing to implementation without waiting for financial closure. 

 

The first phase was completed in around 13 months, making it one of the fastest-implemented renewable energy projects globally and the largest solar power project supported by battery storage systems in Africa. The second phase, with a capacity of 500 megawatts, is scheduled to be inaugurated next May ahead of the summer season.

 

The project was executed by approximately 5,000 Egyptian workers, technicians, and engineers, accounting for more than 5 million safe work hours. Scatec CEO Mr. Mohamed Amer confirmed that the project will contribute to reducing natural gas consumption by 21 million MMBTU annually, supplying renewable energy to around 1.65 million households each year, and cutting carbon emissions by approximately 1.4 million tons annually.