African Development Bank Commits $66 Million to Egypt’s Landmark Solar and Battery Storage Project
The package is $46m from AfDB ordinary resources and $20m concessional from the CIF Clean Technology Fund, with a further $151m mobilized from a consortium of development finance institutions. The Qena plant will supply Egypt Aluminum under a 25-year PPA, cut about 500,000 tCO2 a year and create about 2,500 construction jobs.
The African Development Bank Group (AfDB) has approved a $66 million financing package to support the first phase of a major renewable energy project in southern Egypt that will combine large-scale solar power generation with battery energy storage, strengthening the country’s transition toward cleaner and more reliable energy sources.
The financing agreement was signed with Dandara Solar Power S.A.E., a special purpose company owned by renewable energy developer Scatec and its partners. The project will be developed in Qena Governorate and will feature 500 megawatts (MW) of solar generation capacity alongside a 100-megawatt-hour (MWh) battery energy storage system (BESS), making it one of Egypt’s most significant integrated renewable energy initiatives.
The African Development Bank Group said the funding will support the design, construction, operation, and maintenance of both the photovoltaic solar facility and its battery storage infrastructure. The Bank’s Board of Directors approved the project in July 2026.
The overall financing package includes $46 million from the AfDB’s ordinary resources and $20 million in concessional financing from the Climate Investment Funds’ Clean Technology Fund (CTF). In addition, the project is expected to attract a further $151 million in debt financing from a consortium of development finance institutions.
Once completed, the facility is scheduled to begin full operations in early 2028, generating an estimated 1,373 gigawatt-hours of clean electricity annually. The project is expected to enhance Egypt’s renewable energy capacity while providing a stable and cost-effective source of power for industrial consumers.
A notable feature of the project is its long-term energy supply arrangement with the Aluminium Company of Egypt (EgyptAlum), one of Africa’s largest aluminium producers. Under a 25-year Power Purchase Agreement (PPA), EgyptAlum will serve as the sole off-taker of the electricity generated by the facility. The Egyptian Electricity Transmission Company (EETC) will facilitate the transmission of power from the solar plant to the aluminium production complex through dedicated grid infrastructure.
Industry experts view the integration of battery storage as a key component of the project’s success. The 100-MWh storage system will enable the delivery of renewable electricity during peak evening demand periods and help stabilize energy output by compensating for fluctuations in solar generation. This is expected to improve reliability for industrial operations while maximizing the utilization of clean energy.
Beyond its energy contribution, the project is expected to deliver substantial environmental and socio-economic benefits. According to the African Development Bank, the solar and battery facility will reduce carbon emissions by approximately 500,000 tonnes annually. Construction activities are projected to create around 2,500 jobs, while 23 permanent positions will be maintained during the operational phase. The project will also place a strong emphasis on employment opportunities for women and young people.
Commenting on the investment, Dr. Kevin Kariuki, AfDB Vice President for Power, Energy, Climate and Green Growth, said the project demonstrates how combining utility-scale solar power with battery storage can enhance industrial competitiveness, lower carbon emissions, and help African manufacturers respond to evolving international environmental standards, including requirements associated with the European Union’s Carbon Border Adjustment Mechanism (CBAM).
The Dandara Solar Project aligns with the African Development Bank Group’s Ten-Year Strategy 2024–2033, its Four Cardinal Points strategic framework, and the Bank’s Country Strategy Paper for Egypt. The initiative is expected to stimulate private sector investment in clean energy infrastructure while supporting industrial decarbonization and expanding access to reliable renewable power across the continent.
As Egypt accelerates its renewable energy agenda, the Dandara project represents another significant step toward a more sustainable energy future, while showcasing the growing role of innovative financing and battery storage technologies in Africa’s energy transition.
