The Norwegian company, Scatec, is developing and constructing the project, with a total capacity of 1,000 MW of solar energy, according to a statement from the Cabinet.
Mostafa Madbouly, Prime Minister, inaugurated the first phase of the Obelisk Solar Power Plant in Nagaa Hammadi city.
The first phase has a capacity of 500 MW, in addition to 200 MW/h of battery storage systems.
The Norwegian company, Scatec, is developing and constructing the project, with a total capacity of 1,000 MW of solar energy, according to a statement from the Cabinet.
The statement clarified that the project was completed in a record time of just 13 months since the signing of the Power Purchase Agreement, in line with the country's strategy to enhance developmental investments in Upper Egypt.
Minister of Planning and Economic Development, Rania Al-Mashat, stated that the financing for this project exceeds $600 million in partnership with the European Investment Bank, which contributed $150 million, the African Development Bank with $160 million, as well as the European Bank for Reconstruction and Development, which contributed over $100 million, in addition to other financial institutions.
The project is being developed on an area of more than 20 square kilometers and is considered one of the largest integrated solar energy projects in Egypt.
It is also the first project in the country to combine renewable energy production with battery storage systems, which will help enhance the stability of the national electricity grid and reduce dependence on natural gas during peak consumption periods.
The project will provide electricity to approximately 1.6 million homes across the country.
Additionally, it will result in a cumulative saving of around 513 million thermal units of natural gas over its 25-year operational life, equating to an economic value of nearly $5.1 billion.
The statement revealed that the second phase of the project will be inaugurated in May, with a capacity of 500 MW, as part of preparations for the summer season.
Mohamed Amer, Vice President of Scatec for Egypt and the Middle East, confirmed that the project will reduce natural gas consumption by 21 million MMBTU annually, provide renewable energy for 1.65 million households each year, and help reduce carbon emissions by 1.4 million tons annually.
