African Development Bank Group Invests $66 Million In Egypt’s 500 MW Solar And 100 MWh Battery Storage Project
Key facts
- The African Development Bank Group signed a $66 million financing agreement with Dandara Solar Power S.A.E. for a 500 MW solar and 100 MWh storage project in Egypt
- The project is located in Qena Governorate and will be owned by a special purpose vehicle controlled by Scatec and its partners
- The $66 million package includes $46 million in ordinary resources and $20 million in concessional funding from the Climate Investment Funds
- An additional $151 million in debt financing will be mobilized by a consortium of development finance institutions to support the project's development
- EgyptAlum will serve as the sole power off-taker under a 25-year Power Purchase Agreement for the facility's electricity output
The African Development Bank Group (AfDB) has signed a $66 million financing agreement with Dandara Solar Power S.A.E. to support the first phase of the Dandara solar and battery storage project in Egypt. The project, located in Qena Governorate in southern Egypt, will combine 500 MW of solar power generation capacity with a 100-MWh battery energy storage system (BESS). Dandara Solar Power is a special purpose vehicle owned by Scatec and its partners.
The financing agreement will support the design, construction, operation, and maintenance of the photovoltaic power plant and its integrated battery storage facility. The African Development Bank Group’s Board of Directors approved the project in July 2026. The total $66 million financing package includes $46 million from the Bank Group’s ordinary resources and $20 million in concessional funding from the Climate Investment Funds’ Clean Technology Fund (CTF).
In addition to the AfDB financing, another $151 million in debt financing will be mobilised through a consortium of development finance institutions to support the project’s development. The facility is expected to become fully operational at the beginning of 2028 and will generate approximately 1,373 gigawatt-hours of clean electricity annually. The project aims to provide reliable and cost-effective renewable power while supporting Egypt’s efforts to expand its clean energy capacity.
The Aluminium Company of Egypt (EgyptAlum), one of Africa’s largest aluminium producers, will serve as the project’s sole power off-taker under a 25-year Power Purchase Agreement (PPA). The Egyptian Electricity Transmission Company (EETC) will support the arrangement by providing the necessary transmission infrastructure to deliver electricity from the solar facility to the aluminium production plant.
The integrated battery storage system will play an important role in supplying renewable electricity during peak evening demand periods. It will also help manage fluctuations in solar power generation, improving the reliability of electricity supply for industrial operations.
According to the African Development Bank, the project is expected to reduce approximately 500,000 tonnes of carbon dioxide emissions annually. It will also generate around 2,500 jobs during the construction phase and create 23 permanent positions once operations begin. The project will place particular emphasis on employment opportunities for women and young people.
AfDB Vice President for Power, Energy, Climate, and Green Growth, Dr Kevin Kariuki, said the investment demonstrates how combining large-scale solar generation with battery storage can improve industrial competitiveness, reduce emissions, and help African manufacturers meet changing international market requirements, including those associated with the European Union’s Carbon Border Adjustment Mechanism (CBAM).
The Dandara project aligns with the African Development Bank Group’s Ten-Year Strategy 2024–2033, its Four Cardinal Points strategic vision, and its Country Strategy Paper for Egypt. It is intended to encourage private investment in sustainable energy infrastructure while supporting industrial decarbonisation and expanding access to reliable renewable electricity across Africa.
Pvola take
This development signals strong institutional confidence in large-scale hybrid solar and storage projects in North Africa, particularly when paired with long-term industrial offtake agreements. The inclusion of concessional funding from the Climate Investment Funds reduces the cost of capital, making such infrastructure more viable for developers. For investors, the 25-year PPA with a major industrial consumer provides the revenue stability needed to underwrite the significant upfront costs of battery energy storage systems.
Frequently asked questions
How much financing did the African Development Bank Group approve for the Dandara solar and storage project in Egypt?
The African Development Bank Group approved a $66 million financing package for the project. This amount includes $46 million from ordinary resources and $20 million from the Climate Investment Funds’ Clean Technology Fund.
What are the capacity specifications for the solar generation and battery storage components of the Dandara project?
The project will feature 500 MW of solar power generation capacity and a 100-MWh battery energy storage system. The facility is located in Qena Governorate and is expected to become operational in early 2028.
Who is the sole power off-taker for the Dandara project and what is the duration of the agreement?
EgyptAlum will serve as the sole power off-taker under a 25-year Power Purchase Agreement. The Egyptian Electricity Transmission Company will provide the necessary transmission infrastructure to deliver electricity to the aluminium production plant.