Egypt is accelerating its clean energy transition after the African Development Bank (AfDB) approved a $66 million financing package for the first phase of the Dandara solar project in Qena Governorate, a major renewable energy development designed to supply reliable electricity to industry.

The 500-megawatt (MW) solar photovoltaic (PV) plant, combined with a 100-megawatt-hour (MWh) battery energy storage system, is expected to become one of Egypt’s largest private renewable energy projects when it begins operations in early 2028.

The financing will support the engineering, construction, operation and maintenance of the solar facility, which will help address peak evening electricity demand by storing excess solar power and releasing it when needed.

Solar project strengthens Egypt’s industrial competitiveness

The Dandara project is expected to generate about 1,373 gigawatt-hours (GWh) of clean electricity annually while reducing carbon dioxide emissions by roughly 500,000 tons each year.

Beyond energy generation, the project is projected to create about 2,500 jobs during construction and 23 permanent positions once operational, with emphasis on expanding employment opportunities for women and young people.

The development is also designed to support Egypt’s industrial sector as global markets increasingly demand lower-carbon production standards.

AfDB financing supports Egypt’s green investment ambitions

The approved package includes $46 million from AfDB’s ordinary resources and $20 million in concessional financing from the Climate Investment Funds’ Clean Technology Fund. Kariuki further noted that the project will cut CO2 emissions by about 12.5 million tons over its life.

Additional funding from development finance institutions is expected to raise the total project investment above $290 million, highlighting growing international interest in Egypt’s renewable energy market.

Under a 25-year power purchase agreement (PPA), Egypt Aluminum Company (EgyptAlum) will become the sole buyer of electricity generated from the solar facility. The project will also operate through a wheeling agreement with the Egyptian Electricity Transmission Company (EETC).

Renewable energy supports Egypt’s export strategy

AfDB Vice President for Power, Energy, Climate and Green Growth Kevin Kariuki said the project represents a major step toward industrial decarbonization, helping EgyptAlum maintain access to European markets amid the European Union’s Carbon Border Adjustment Mechanism (CBAM).

The project is expected to prevent approximately 12.5 million tons of carbon dioxide emissions over its lifetime, strengthening Egypt’s position in the global low-carbon manufacturing race.

Wale Shonibare, AfDB Director of Energy Financial Solutions, Policy and Regulation, described Dandara as a benchmark for future private-sector renewable energy investment across Africa. The project aligns with AfDB’s 2024–2033 strategy and broader push to mobilize private capital for sustainable energy infrastructure across the continent.