Fiche récapitulative
The project will finance the construction and operation of a 1 125 MWp solar photovoltaic plant, including a 100 MW / 200 MWh battery energy storage system, located in Qena, Egypt.
The project aims to increase the production and storage of electricity from low-carbon sources, specifically solar photovoltaic (PV), and supports Egypt's renewable energy targets. These targets include increasing the share of renewable sources to 42% of electricity generation by 2030. The project is consistent with European Union (EU) policies, in particular the REPowerEU initiative, by promoting the development of sustainable renewable energy infrastructure in partner countries. It also aligns with the EU-Egypt Partnership Priorities 2021–2027, which focus on diversifying energy sources and transitioning towards a low-emissions economy, as well as the EU-Egypt Strategic and Comprehensive Partnership signed in March 2024. The operation contributes to the Team Europe initiative, with European Development Financial Institutions (EDFIs) participating in the financing of the project. This coordinated European support aims to advance Egypt's green energy transition.
The Project develops 1.1 GWp of new solar PV generation capacity alongside a 100 MW/200 MWh battery system, in order to increase the production and storage of electricity from low carbon sources (solar), thus addressing negative climate and environmental externalities, a market failure, through the reduction of carbon and air pollution. It is strongly aligned with Egyptian and EU strategic priorities for climate action and energy cooperation, particularly as articulated in the EU-Egypt Joint Statement on Climate, Energy and Green Transition, such as Egypt's Vision 2030 and Integrated Sustainable Energy Strategy (ISES) 2035, supporting the country's commitment to reach 42% of electricity generation from renewable sources by 2030. The Project also aligns with several EU priority areas highlighted in the EU-Egypt Strategic and Comprehensive Partnership, the EU-Egypt Partnership Priorities 2021-2027, the NDICI-Global Europe framework, the Economic and Investment Plan for the Southern Neighbours the EU's Multiannual Indicative Programme (MIP) for the Southern Neighbourhood and Egypt and Team Europe's Initiative for the country. The financing of this project is in line with the Bank's lending priority objectives on Energy (Renewable Energy) as well as the transversal objectives on Climate Action (mitigation), Environmental Sustainability (Pollution Prevention Control).
The project is expected to rely on a long-term PPA with the Egyptian Electricity Transmission Company (EETC) as the offtaker. It is expected to generate a positive broader social benefit by helping to produce clean and renewable power at a cost reasonably below the cost of fossil-fuel based alternatives in Egypt.
EIB is offering a long-term project finance loan under the NDICI Investment Window 2, tailored to the Obelisk project's needs. Alongside co-lenders, the EIB will have helped bridge the funding gap, demonstrating strong collaboration among DFIs.
The national environmental protection framework in Egypt is established by Environmental Law 4/1994 (as subsequently amended), alongside its Executive Regulations. According to this framework, the project was categorized by the competent authority as being 'Category Scoped B', a category that includes projects with potential significant environmental impacts due to some components, but not because of the type of project itself. For 'Category Scoped B' projects, national law requires the preparation of an EIA study, without a public consultation. The promoter has prepared an ESIA report for the Project, covering national law requirements but inclusive of the assessment of the social impacts. Public consultation was carried out on the project.
The Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement. The project seems to be operating without exclusive or special rights within the meaning of the EU Utilities Directive 2004/17/EC and 2014/25/EU, hence private sector procurement procedures will apply. This will be further assessed during the appraisal.
Under EFSD+ Guarantee