African Development Bank Approves $66 Million For Egypt’s 500 MW Dandara Solar Project With Battery Storage

The African Development Bank Group has approved a financing package of up to $66 million for the first phase of the 500 MW Dandara Solar Project in Egypt, marking a major step toward expanding clean energy and supporting industrial decarbonisation in the country. The project will also include a 100 MWh battery energy storage system (BESS) and will be developed in Qena Governorate in southern Egypt.

The approved financing package consists of $46 million from the African Development Bank’s ordinary resources and $20 million in concessional funding from the Climate Investment Funds’ Clean Technology Fund (CTF). Additional debt financing is expected to be mobilised from a consortium of development finance institutions. The total investment required for the project is estimated to exceed $290 million.

The project involves the design, construction, operation, and maintenance of a utility-scale solar photovoltaic plant integrated with battery storage. Once completed, it is expected to become operational at the beginning of 2028 and generate approximately 1,373 GWh of clean electricity annually. The integrated battery energy storage system will help deliver renewable power during evening peak demand while improving grid stability by addressing the intermittent nature of solar generation.

The Aluminium Company of Egypt (EgyptAlum) will be the sole buyer of electricity produced by the project under a 25-year Power Purchase Agreement (PPA). The agreement will be supported through a wheeling arrangement with the Egyptian Electricity Transmission Company (EETC). EgyptAlum, one of Africa’s largest aluminium producers and a publicly listed company on the Egyptian Stock Exchange, is expected to benefit from a reliable supply of renewable electricity for its operations.

According to the African Development Bank, the project is expected to reduce annual carbon dioxide emissions by around 500,000 tonnes, while total emissions avoided over the project’s lifetime could reach approximately 12.5 million tonnes. The clean energy supplied to EgyptAlum will also help the company maintain access to European markets by supporting compliance with the European Union’s Carbon Border Adjustment Mechanism (CBAM), which came into effect in January 2026.

The construction phase is expected to create around 2,500 jobs, while 23 permanent positions will be generated during operations. The project also places emphasis on increasing employment opportunities for women and young people.

The African Development Bank noted that the Dandara Solar Project will serve as a landmark renewable energy initiative in Egypt. As one of the largest private corporate renewable energy PPAs in the country and the wider region, the project is expected to encourage further private sector investment in commercial and industrial renewable energy while supporting Egypt’s transition toward a low-carbon economy and strengthening sustainable industrial development.