The first phase of the Obelisk solar project in Qena, Egypt – said to be the largest renewable energy project in Africa – has been inaugurated, delivering 500 MW of solar generation capacity alongside 200 MWh of battery energy storage.

Developed and constructed by the Norwegian company Scatec, it is expected to offer a combined capacity of 1 GW of solar power, and generate approximately 2.2 TWh of electricity annually, once the second phase is completed in May this year.

The project is co-financed by the European Investment Bank ($150mn), the African Development Bank ($160mn) and the European Bank for Reconstruction and Development ($100mn), in addition to other financing institutions.

The Obelisk project is expected to reduce CO₂ emissions by up to 1.4mn tonnes, with an additional reduction of 700,000 tonnes planned in the second phase.  

Egypt’s national energy strategy is to raise the share of renewables in the electricity mix to 42% by 2030.  

New solar manufacturing facilities were inaugurated this month, forming part of a broader effort to expand industrial capacity in the Suez Canal Economic Zone.

The Elite Solar Technology complex, located within the Ain Sokhna Industrial Zone, comprises two distinct facilities. The first factory, with an investment of $40mn, has an annual production capacity of 2 GW of solar PV cells. The second facility, backed by a $76mn investment, will produce up to 3 GW of solar panels and related components.  

Solar and wind capacity in MENA set for tenfold growth by 2040

The Middle East and North Africa (MENA) region is said to be entering a period of rapid renewable power growth, led by very large solar projects and the increasing use of energy storage, analysis by DNV has found.  

The report shows that renewable generation capacity in MENA is set to grow around tenfold by 2040 – and continue rising through 2060 – even as the region remains a major oil and gas producer.  

By 2060, electricity is expected to meet 35% of total energy demand in the region, with most of that electricity generated from renewables. Solar and wind together are projected to generate about 85% of electricity by that time, with solar accounting for about 45% and wind about 40%.  

The report finds that growth is driven by both increased renewable supply and new electricity demand. Large renewable power projects are multiplying across the region, including very large solar plants, solar-plus-storage facilities and new wind developments. Electricity demand is rising in sectors such as data centres, electric mobility and green hydrogen production, while existing industries are increasing their use of low-carbon power in response to policies such as the European Union Carbon Border Adjustment Mechanism (EU CBAM).  

The report notes that a key shift is expected around 2040. At that point, annual growth in renewable electricity is projected to exceed annual growth in total electricity demand, leading to a steady increase in the share of renewable electricity in the overall mix.  

Solar power remains the leading renewable technology in the region. Installed solar capacity is projected to quadruple from 76 GW in 2024 to 340 GW by 2029. By the end of the decade, solar is expected to supply close to one-fifth of all electricity. The share of projects combined with battery storage is also expected to rise as developers seek round-the-clock supply and greater system flexibility.  

Wind power, though starting from a smaller base, is expected to triple in each decade from 2020 to 2060. Wind generation patterns complement solar output, with higher production at night and during seasonal wind periods, especially when combined with storage.  

Taken together, the report forecasts that, alongside the tenfold rise in installed capacity. solar and wind electricity generation in MENA will increase about fourteenfold by 2040.  

Energy storage capacity in the region is projected to soar from about 36 GWh today to almost 9,500 GWh by 2060. Batteries will increasingly replace thermal power plants as the main source of short-term flexibility. Regional interconnections will also support system balancing and electricity trade as renewable shares increase, the report finds.