AfDB Funds $66M Solar Project for Egypt's Aluminium Industry

The African Development Bank Group has approved a $66 million financing agreement for the first phase of Egypt's Dandara project, which will supply solar power and battery storage to the country's aluminium industry.

The facility in Qena Governorate will include 500 megawatts of solar capacity and a 100-megawatt-hour battery storage system, operated by Dandara Solar Power S.A.E., a special purpose vehicle owned by Scatec and its partners.

The electricity generated will be exclusively sold to EgyptAlum, one of Africa's largest aluminium producers, under a 25-year power purchase agreement. The Egyptian Electricity Transmission Company will transmit the power to the aluminium facility.

The project is set to become fully operational in early 2028, with an estimated annual electricity generation of 1,373 gigawatt-hours. It is intended to provide EgyptAlum with clean, reliable, and cost-effective power for its energy-intensive operations.

The Bank Group's Board approved the project in July 2026, with the $66 million package combining $46 million from ordinary resources and $20 million in concessional funding from the Climate Investment Funds' Clean Technology Fund. Additional $151 million in debt financing will be mobilized from a consortium of development finance institutions.

The battery system will supply renewable electricity during peak evening demand and help manage solar generation fluctuations, ensuring power availability when needed. The project is expected to create about 2,500 jobs during construction and 23 permanent roles during operation.