Egypt: $66 million from the AfDB for 500 MW of solar and 100 MWh of battery storage in Qena

The African Development Bank (AfDB) announced on November 2, 2026, the signing of a $66 million financing agreement for the first phase of the Dandara solar and storage project in the Qena governorate of southern Egypt.

The package includes $46 million from the Bank Group's ordinary capital resources and $20 million in concessional financing from the Clean Technology Fund, part of the Climate Investment Funds, according to the institution's statement. Additional debt financing of $151 million is to be mobilized from a consortium of development finance institutions, which remains unnamed. The Bank's board of directors approved the project in July 2026.

500 megawatts and a battery for evening peak demand

The power plant is set to total 500 megawatts of solar capacity, coupled with a 100 megawatt-hour battery storage system designed to provide electricity during the evening peak consumption period. The AfDB expects an estimated annual production of 1,373 gigawatt-hours, with full commissioning scheduled for early 2028. The project is being developed by Dandara Solar Power S.A.E., a project company owned by Scatec and its partners.

Electricity for Egyptian aluminum

The sole off-taker will be the Aluminium Company of Egypt (EgyptAlum) under a twenty-five-year power purchase agreement, with transmission provided by the Egyptian Electricity Transmission Company. The Bank highlights a reduction of approximately half a million tonnes of carbon dioxide emissions per year.

For Kevin Kariuki, the AfDB's Vice President for Power, Energy, Climate and Green Growth, the combination of large-scale solar and storage is a direct response to the European Union's Carbon Border Adjustment Mechanism. In other words, decarbonizing Egyptian aluminum is a prerequisite for its access to the European market. The stakes go beyond Egypt: it concerns the ability of African industries to remain competitive in the face of rules written elsewhere.

A figure to keep in mind: 23 permanent jobs

The statement announces approximately 2,500 jobs during construction and 23 permanent positions during operation. This gap serves as a reminder that large solar plants primarily create construction-related activity, and that sustainable value for a country lies in equipment manufacturing and technical expertise, not just in electricity production.

These details come from the AfDB's own announcement: neither the total cost of the project, the names of the lenders in the consortium, nor the schedule for subsequent phases are specified.