EIB Backs Egypt’s Dandara Solar and Battery Project with a loan worth up to $90M

Misr Aluminium Company, known as EgyptAlum, will purchase the plant’s renewable electricity under a long-term power purchase agreement to support cleaner aluminium production.

The European Investment Bank (EIB), through its development arm EIB Global, is providing a loan of up to $90 million for the first phase of Egypt's Dandara solar and battery storage project. The financing carries a European Union guarantee under the European Fund for Sustainable Development Plus (EFSD+), supporting an investment in renewable electricity for industrial use. Located in Qena Governorate, the project will supply cleaner power to Egypt's largest aluminium producer and expand the country's renewable generation capacity.

The first phase includes a 569 MWp solar photovoltaic plant and an associated 100 MWh battery energy storage system, with electricity generation conservatively estimated at around 1,500 GWh during its first year of operation. Dandara Solar Power S.A.E., a project company that will be owned by Norwegian renewable energy developer Scatec ASA, will develop, construct, operate and maintain the facilities. Scatec will serve as lead developer, drawing on its experience delivering large renewable energy projects in Egypt.

Misr Aluminium Company, known as EgyptAlum, will purchase the plant's renewable electricity under a long-term power purchase agreement to support cleaner aluminium production. Egypt's Ministry of Finance is guaranteeing EgyptAlum's payment obligations, providing financial backing for the electricity supply arrangement. The project is expected to lower the carbon footprint of EgyptAlum's production and strengthen the competitiveness of its aluminium exports.

European and African lenders support the investment

The EIB is financing Dandara alongside the European Bank for Reconstruction and Development (EBRD) and the African Development Bank (AfDB), bringing European and African development lenders together around a major clean energy investment. The financing demonstrates the Team Europe approach, with the EU-backed EIB and fellow European lender EBRD supporting European companies working in North Africa and helping expand Egypt's renewable electricity supply. Dandara is also a Global Gateway flagship project, reflecting the EU's support for energy and climate investment through international partnerships.

Solar power and storage support cleaner industry

EIB Vice-President Gelsomina Vigliotti described Dandara as a major step in Egypt's green transition, highlighting the contribution of solar generation and battery storage to reliable renewable electricity, reduced fossil fuel dependence and cleaner aluminium production. Scatec CEO Terje Pilskog linked the development to the company's recent Obelisk project, saying the backing of the three development banks reflected confidence in Dandara and Scatec's delivery record in Egypt, one of its most important markets. EU Ambassador Angelina Eichhorst said the project demonstrated how EU guarantees and cooperation with international financiers could support industrial decarbonisation at scale, strengthen Egypt's renewable energy system and deepen EU-Egypt energy and climate cooperation.

Construction prepares the way for April 2028 operations

Construction is expected to begin shortly, with commercial operations scheduled for April 2028 and the promoters bringing experience from completing a similarly large solar plant beside the new project ahead of schedule. Dandara supports Egypt's ambition to generate 42% of its electricity from renewable sources by 2030, connecting the expansion of solar power with the electricity needs of a major industrial producer. The investment also aligns with the EU-Egypt Strategic and Comprehensive Partnership and the Trans-Mediterranean Renewable Energy and Clean Technology Cooperation Initiative, known as T-MED.

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