Financing of up to $90 million has been committed by the European Investment Bank (EIB), through its development arm EIB Global, to fund phase one of the Dandara Solar PV and battery energy storage project in Egypt’s Qena Governorate. The loan is backed by a guarantee from the European Union’s European Fund for Sustainable Development Plus (EFSD+).

Norwegian developer Scatec ASA serves as the lead developer and owner of the project company, Dandara Solar Power S.A.E., which will handle the development, construction, operation and maintenance of the site. Phase 1 comprises a 569 MWp solar photovoltaic plant alongside a 100 MWh battery energy storage system.

The facility will supply clean electricity to Misr Aluminium Company (EgyptAlum), the largest aluminium producer in Egypt, under a long-term power purchase agreement. Egypt’s Ministry of Finance provides a guarantee for EgyptAlum’s payment obligations. Conservative estimates project the facility will generate approximately 1,500 GWh during its first year of operation.

Construction works are due to commence shortly, with commercial operations targeted for April 2028. The development team previously completed an adjacent solar PV facility ahead of schedule.

Co-financing for the scheme is being delivered alongside the European Bank for Reconstruction and Development (EBRD) and the African Development Bank (AfDB). The initiative supports the EU Global Gateway flagship, the EU-Egypt Strategic Partnership and the Trans-Mediterranean Renewable Energy and Clean Technology Cooperation Initiative (T-MED). It also aligns with Egypt’s target to produce 42% of its electricity from renewable sources by 2030.

“The Dandara project is a major step forward for Egypt’s green transition. By combining large-scale solar generation with battery storage, it will deliver reliable renewable electricity for Egyptian industry, reduce dependence on fossil fuels and support cleaner aluminium production. This Global Gateway flagship also illustrates how European and African partners can mobilise long-term finance for high-impact climate investment,” said EIB Vice-President Gelsomina Vigliotti.

“Dandara builds on what Scatec recently achieved with Obelisk; now bringing renewable power directly to Egyptian industry at scale. The backing of EBRD, AfDB and EIB reflects the strength of the project and our track record in Egypt. We are proud to be delivering another landmark project in a country that has become one of our most important markets, and the confidence that leading international development finance institutions place in Scatec as a partner,” said Scatec CEO Terje Pilskog.

“Dandara brings together solar power, battery storage and industrial decarbonisation in a landmark investment for Egypt. It demonstrates the key role of the European Union in guaranteeing IFIs investments and how cooperation between the EU and international financiers can support the decarbonisation of a key industry at scale. The project will strengthen the country’s renewable energy system while enabling EgyptAlum to produce aluminium with a lower carbon footprint. Through the EFSD+ and Global Gateway, the European Union is proud to contribute to this ambitious project, reinforcing our strategic cooperation with Egypt on energy and climate,” said EU Ambassador Angelina Eichhorst.