Egypt is moving ahead with another major clean energy project as it works to reduce its dependence on fossil fuels and strengthen its electricity supply. The country has secured up to $66 million in financing from the African Development Bank (AfDB) for the first phase of the 500-megawatt (MW) Dandara Solar Project. The project will supply renewable electricity to Egypt’s largest aluminium producer while helping the country move closer to its renewable energy targets.
African Development Bank Backs Major Solar Investment
The African Development Bank’s Board of Directors approved the financing package on July 13, 2026, marking another step in Egypt’s transition toward clean energy. The project will be built in Qena Governorate in southern Egypt and is expected to become an important addition to the country’s renewable energy capacity.
The financing package includes $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). The project has an estimated total investment of approximately $300 million, with additional financing expected from other development finance institutions.
The funding will support the design, construction, operation, and maintenance of the first phase of the Dandara Solar Project.
Solar Plant Will Feature Battery Energy Storage
The first phase will include a 500 MW photovoltaic (PV) solar power plant and a 100-megawatt-hour (MWh) battery energy storage system (BESS). The battery will store excess electricity generated during the day and release it when demand increases, helping improve the stability and reliability of Egypt’s power grid.
The project is expected to begin commercial operations in early 2028. Once operational, the facility is projected to generate around 1,373 gigawatt-hours (GWh) of clean electricity every year. The addition of battery storage makes the project more efficient by allowing renewable energy to be available even after sunset, reducing pressure on conventional power generation.
Renewable Power for Egypt’s Largest Aluminium Producer
Electricity generated by the Dandara Solar Project will be supplied to Misr Aluminium Company (EgyptAlum) through a 25-year Power Purchase Agreement (PPA). The arrangement will use the transmission network of the Egyptian Electricity Transmission Company (EETC).
Misr Aluminium Company is Egypt’s largest aluminium producer and one of Africa’s largest aluminium smelters. The use of renewable electricity will help the company lower its carbon emissions and meet the growing demand for low-carbon aluminium in export markets, particularly in Europe, where environmental regulations continue to become more stringent.
The project also demonstrates how renewable energy can support energy-intensive industries while improving their long-term sustainability.
Environmental and Economic Benefits
The Dandara Solar Project is expected to deliver significant environmental benefits alongside economic growth. According to the African Development Bank, the project will reduce carbon dioxide emissions by approximately 500,000 tonnes every year. Over its operating lifetime, total emissions reductions are expected to reach around 12.5 million tonnes.
Construction activities are expected to create about 2,500 jobs, while the completed facility will support 23 permanent positions. The project also aims to increase employment opportunities for women and young professionals during its development and operation. These benefits align with Egypt’s efforts to build a cleaner economy while creating new employment opportunities in the renewable energy sector.
Supporting Egypt’s Renewable Energy Goals
The Dandara Solar Project forms part of Egypt’s Nexus of Water, Food and Energy (NWFE) programme, which aims to accelerate renewable energy investments and strengthen climate resilience. The programme supports Egypt’s target of adding around 10 gigawatts (GW) of renewable energy capacity by 2028 while reducing greenhouse gas emissions.
Large-scale solar projects such as Dandara are expected to play an important role in helping Egypt diversify its energy mix, improve energy security, and attract international investment into sustainable infrastructure.
A Strong Step Toward a Cleaner Energy Future
The Dandara Solar Project highlights Egypt’s continued commitment to expanding renewable energy and supporting cleaner industrial growth. By combining large-scale solar generation with battery energy storage, the project will provide reliable electricity, reduce carbon emissions, and strengthen the country’s energy infrastructure.
As construction moves forward, the project is expected to support Egypt’s clean energy transition while providing long-term environmental and economic benefits for the country and its industrial sector.
