The European Investment Bank will provide a loan of up to $90 million to help finance the first phase of the Dandara solar and battery project in Egypt’s Qena Governorate.
The funding will be backed by a guarantee from the European Fund for Sustainable Development Plus (EFSD+), an EU programme that supports investment in partner countries, the EIB informed on Thursday.
Phase one of the project includes a 569 megawatt-peak (MWp) solar photovoltaic plant — meaning its maximum output under ideal conditions — and a 100 megawatt-hour (MWh) battery energy storage system.
The project company, Dandara Solar Power S.A.E., will be owned by Norwegian renewable developer Scatec ASA.
Electricity from the plant is set to be sold to Misr Aluminium Company (EgyptAlum), described as Egypt’s largest aluminium producer, under a long-term power purchase agreement.
EgyptAlum’s payment obligations under that agreement are supported by a guarantee from Egypt’s Ministry of Finance.
The project is expected to generate around 1,500 gigawatt-hours (GWh) of electricity in its first year of operation, based on “conservative estimates.”
Backed by European and African lenders
The EIB said it is financing the project alongside the European Bank for Reconstruction and Development and the African Development Bank.
Construction is expected to begin shortly, with commercial operations scheduled to start in April 2028.
The EIB said the project supports Egypt’s target of generating 42% of its electricity from renewable sources by 2030, and is linked to initiatives including the EU Global Gateway programme and the Trans-Mediterranean Renewable Energy and Clean Technology Cooperation Initiative (T-MED).
