NEWS

The African Development Bank Group and Dandara Solar Power S.A.E, a Special Purpose Vehicle owned by Scatec and its partners have signed a financing agreement worth $66 million for the first phase of the Dandara project, combining 500 MW of solar power with a 100-MWh battery storage system in Qena Governorate, southern Egypt.

The Bank Group’s Board of Directors approved the project in July 2026. The financing comprises $46 million sourced from ordinary Bank Group resources and $20 million in concessional funding from the Climate Investment Funds’ Clean Technology Fund (CTF). An additional $151 million in debt financing will be mobilised from a consortium of development finance institutions. The funds will support the design, construction, operation, and maintenance of a photovoltaic power plant with an integrated battery energy storage system (BESS).

The project is expected to be fully operational at the beginning of 2028 and will generate an estimated 1,373 gigawatt-hours of clean, reliable, and cost-effective electricity annually.

The Aluminium Company of Egypt (EgyptAlum) — one of Africa’s largest aluminium producers — will be the sole off-taker under a 25-year Power Purchase Agreement (PPA), supported by the Egyptian Electricity Transmission Company (EETC), which provides for the transmission of power from the solar plant to the aluminium plant.

The BESS will supply renewable power during peak evening demand while mitigating the variability of solar generation.

The project is expected to reduce annual carbon dioxide emissions by roughly half a million tonnes and create about 2,500 jobs during construction and 23 permanent roles during operation, with a special focus on women and youth employment.

It is aligned with the Bank Group’s Ten-Year Strategy 2024-2033, its Four Cardinal Points strategic vision, and its Country Strategy Paper for Egypt, which aims to increase and sustain access to sustainable energy sources across Africa by catalysing commercial capital mobilisation in the energy sector.