EgyptAlum’s 500MW solar project lands $66 mln AfDB backing

08 / 08 / 2026

By Marwa Nassar - -

The African Development Bank (AfDB) Group has approved up to $66 million to finance the first phase of EgyptAlum’s 500MW Dandara solar project and a 100MWh battery energy storage system (BESS) in Qena Governorate.

The package includes $46 million from AfDB’s ordinary resources and $20 million in concessional funding from the Climate Investment Funds’ Clean Technology Fund. Additional debt will be mobilized from a consortium of development finance institutions. The project’s total cost is estimated at more than $290 million.

Powering EgyptAlum:

The project will involve the development, construction, operation, and maintenance of a photovoltaic power plant integrated with battery storage. EgyptAlum will be the sole off-taker under a 25-year Power Purchase Agreement (PPA), supported by a wheeling agreement with the Egyptian Electricity Transmission Company (EETC).

The project is expected to be fully operational in early 2028, generating around 1,373 gigawatt-hours of electricity annually.

Cutting emissions:

The battery system will store renewable power for peak evening demand and help mitigate fluctuations in solar generation. The project is expected to cut CO2 emissions by around 500,000 tonnes annually, or approximately 12.5 million tonnes over its lifetime.

“The project depicts industrial decarbonization at best. It will enable EgyptAlum to safeguard its European aluminum market share while protecting more than 6,000 Egyptian jobs amid the European Union’s Carbon Border Adjustment Mechanism which took effect in January 2026,” said Dr Kevin Kariuki, African Development Bank Vice President for Power, Energy, Climate, and Green Growth.

Jobs, new investment benchmark:

Construction is expected to create around 2,500 jobs, while operations will generate 23 permanent roles, with a focus on women and youth employment.

The project is also expected to set a benchmark for private investment in industrial decarbonization and commercial and industrial renewable energy in Egypt and the wider region.

“As the largest private corporate PPA in Egypt and the region, Dandara will establish an important benchmark for future private investment in industrial decarbonisation and in commercial and industrial renewable energy,” said Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulation at the African Development Bank.