European Investment Bank Supports Large-Scale Solar and Storage Expansion in Egypt

European Investment Bank Supports Large-Scale Solar and Storage Expansion in Egypt

(IN BRIEF) The European Investment Bank has approved $150 million in financing for Egypt’s Obelisk hybrid solar and battery storage project, coinciding with the early completion of its first phase in Qena Governorate. Developed by Scatec, the project combines large-scale solar generation with battery storage to improve grid reliability and supply clean electricity under a long-term agreement with Egypt’s transmission operator. Backed by a coordinated Team Europe financing structure, Obelisk supports Egypt’s renewable energy targets, strengthens energy security and reflects growing European engagement in the country’s clean energy transition.

(PRESS RELEASE) LUXEMBOURG, 13-Jan-2026 — /EuropaWire/ — The European Investment Bank, operating through its development arm EIB Global, has approved $150 million in funding for the Obelisk solar photovoltaic and battery storage project in Egypt, as the first phase of the development reaches completion in Qena Governorate. The milestone was marked in the presence of senior Egyptian officials, European representatives and Scatec leadership, underscoring the project’s strategic importance for Egypt’s energy transition.

Obelisk is designed as a large-scale hybrid renewable energy facility, combining a 1.1 GWp solar photovoltaic installation with a 100 MW/200 MWh battery energy storage system. Once fully operational, the project is expected to supply up to 1 GW of clean electricity under a long-term power purchase agreement with the Egyptian Electricity Transmission Company. The integration of battery storage is intended to improve grid stability, support peak demand and strengthen the overall resilience of Egypt’s power network.

Developed by Scatec, the project represents the largest hybrid solar PV installation in Africa to date and reflects growing momentum behind utility-scale renewable energy in the region. Financing for Obelisk is structured through a partnership of international institutions, with the African Development Bank acting as a co-financier. Additional participation comes from the European Bank for Reconstruction and Development and British International Investment, while EU-backed grants, concessional funding and an NDICI guarantee provide further risk mitigation. According to the company’s press release, this Team Europe framework highlights Europe’s role as a long-term partner in Egypt’s green growth agenda.

EIB officials described the project as a practical demonstration of how large-scale financing can translate climate commitments into operational infrastructure. By supporting renewable generation paired with storage, the investment aims to deliver reliable and affordable electricity, reduce carbon emissions and contribute to economic resilience.

From the developer’s perspective, Scatec emphasised that the EIB’s involvement strengthens the financial foundation of the project and supports the broader expansion of renewable energy capacity in Egypt. European Union representatives also highlighted the project’s contribution to skilled employment, energy independence and sustainable development.

The Obelisk project aligns with Egypt’s goal of achieving 42% renewable energy in its electricity mix by 2030 and supports European policy priorities under REPowerEU, the EU-Egypt Strategic Partnership and the Global Gateway initiative. The investment further reinforces the EIB’s commitment to climate action, energy security and sustainable infrastructure across the Southern Neighbourhood.

Background information

About EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway. It aims to support around €100 billion of investment by the end of 2027. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world. Photos of EIB headquarters for media use are available here.

About the EIB Group

The EIB Group, consisting of the European Investment Bank and the European Investment Fund, is the biggest multilateral financial institution in the world and one of the largest providers of finance for climate action. As the bank of the European Union, its shareholders are the EU Member States, and it works in close collaboration with the European Commission. The EIB Group’s policy priorities are financing small and medium firms, innovation, digital and human capital, sustainable cities and regions, and sustainable energy and natural resources. Its work extends beyond Europe to over 160 countries.

About the Global Gateway Investment Agenda

EIB Global is a key partner in the implementation of the European Union’s Global Gateway Investment Agenda, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does, building on the Bank’s 65 years of experience in this domain.

Media Contact:

Richard Willis
r.willis@eib.org
+352 4379 – 82155

Press Office

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SOURCE: European Investment Bank