Egypt has secured financing of up to $66 million from the African Development Bank Group (AfDB) for the first phase of the 500-megawatt (MW) Dandara Solar Power Project in Nagaa Hammadi. The funding will support the development of a utility-scale solar plant with integrated battery storage as the country continues to expand its renewable energy capacity.
The African Development Bank's Board of Directors approved the financing package on July 13.
The approved financing will be used to design, construct, operate, and maintain a photovoltaic (PV) solar power plant. In addition, the facility will include a 100-megawatt-hour (MWh) battery energy storage system, helping improve grid stability and energy reliability.
According to the AfDB, the project is scheduled to begin commercial operations in early 2028.
Once operational, the Dandara Solar Project is expected to generate around 1,373 gigawatt-hours (GWh) of electricity annually.
Moreover, the project is projected to reduce carbon dioxide emissions by approximately 500,000 tonnes each year. During construction, it is expected to create around 2,500 jobs, followed by 23 permanent positions during operations. The initiative also aims to increase employment opportunities for women and young professionals.
The electricity generated from the project will be supplied to Misr Aluminum Company (EgyptAlum) under a long-term take-or-pay Power Purchase Agreement (PPA).
EgyptAlum, listed on the Egyptian Exchange (EGX) since 1997, is one of Africa's largest aluminium producers. The company will use the renewable electricity to support its industrial operations.
Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth at the African Development Bank, said the project supports industrial decarbonisation while helping EgyptAlum remain competitive in European markets following the implementation of the European Union's Carbon Border Adjustment Mechanism (CBAM) in January 2026.
He added that the project is expected to reduce around 12.5 million tonnes of carbon dioxide emissions over its operational lifetime.
The financing package consists of $46 million from the African Development Bank's ordinary resources and $20 million in concessional financing from the Climate Investment Funds' Clean Technology Fund (CTF).
Additionally, a consortium of development finance institutions is expected to provide further debt financing for the project.
The Dandara Solar Project has a total estimated investment of more than $290 million. It forms part of Egypt's Nexus of Water, Food and Energy (NWFE) programme, which aims to add approximately 10 gigawatts (GW) of renewable energy capacity by 2028.
The project agreements were signed in October 2025 by Dandara Solar Energy Company, a subsidiary of Norway-based renewable energy company Scatec ASA, alongside financial institutions including the African Development Bank (AfDB), European Bank for Reconstruction and Development (EBRD), and the European Investment Bank (EIB).
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