Egypt’s $650 million Dandara solar power project has secured up to $90 million in financing from the European Investment Bank (EIB), advancing a major renewable energy development designed to supply electricity to the country’s largest aluminium producer.

The investment will support the first phase of the project in Qena governorate, where a 569-megawatt-peak solar photovoltaic plant and a 100-megawatt-hour battery storage system will supply renewable electricity to Misr Aluminium Company, also known as EgyptAlum, under a long-term power purchase agreement.

Beyond expanding Egypt’s renewable energy capacity, the development is expected to help EgyptAlum reduce production-related carbon emissions and strengthen the competitiveness of its aluminium exports, as manufacturers face growing pressure to lower the environmental impact of industrial production.

$90 million financing supports first phase

The EIB, through its development arm EIB Global, announced the financing on October 29, with the first phase expected to begin commercial operations in April 2028.

The facility is projected to generate approximately 1,500 gigawatt-hours of electricity during its first year of operation, providing EgyptAlum with a substantial supply of renewable power for its industrial operations.

The combination of solar generation and battery storage is intended to provide more reliable renewable electricity while reducing dependence on fossil fuels. EIB Vice-President Gelsomina Vigliotti said the project would support Egypt’s green transition by delivering renewable electricity to industry and enabling cleaner aluminium production.

Scatec advances $650 million development

The EIB financing forms part of a broader investment of approximately $650 million to develop the Dandara project.

Renewable energy developer Scatec and its financial partners signed the agreements required to advance the development at a ceremony attended by Egyptian Prime Minister Mostafa Madbouly a few days before the EIB announcement.

Once fully developed, Dandara will have 1,000 megawatts of solar generation capacity and 200 megawatt-hours of battery storage, expanding the project beyond the initial phase.

The first phase’s 569 MWp solar plant and 100 MWh battery system will therefore account for more than half of the project’s planned solar capacity and battery storage.

Egypt targets 42% renewable electricity by 2030

Dandara forms part of Egypt’s broader strategy to increase renewable energy generation, with the government targeting a 42% share of electricity from renewable sources by 2030.

The project also falls under the European Union-Egypt Strategic and Comprehensive Partnership and the Trans-Mediterranean Renewable Energy and Clean Tech Cooperation Initiative.

For Egypt, the development combines renewable energy expansion with industrial decarbonisation, positioning cleaner electricity as a potential contributor to the competitiveness of its aluminium exports.

EgyptAlum, the country’s largest aluminium producer, is expected to benefit from the long-term electricity supply agreement as the first phase moves toward commercial operations in 2028.