Egypt announced on Monday, 26 October 2026, the signing of preliminary financing terms for the Dandara solar plant, a project valued at an estimated $650 million in the southern Qena governorate. Norwegian developer Scatec reached this stage with the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and the African Development Bank (AfDB) at a ceremony attended by Prime Minister Mostafa Madbouly.
The project at Nagaa Hammadi is designed to combine around 1 gigawatt of photovoltaic generation with batteries capable of storing 200 megawatt-hours of electricity. It is intended in particular to serve EgyptAlum, a major aluminium producer, and is expected eventually to meet roughly one-third of the company’s power needs. For such an energy-intensive industry, the project would shift part of its electricity supply towards lower-carbon generation.
Two separate agreements were also announced on Monday: one covering Dandara’s connection to Egypt’s national grid, and another providing for an equity investment by the National Bank of Egypt in the project company. They concern different steps in the development process. The arrangement with the three international lenders sets out preliminary terms; it does not mean that the full $650 million has been disbursed.
Development is planned in two stages, each adding 500 megawatts of solar power and 100 megawatt-hours of battery storage. Financing for the first stage had already been examined by lenders. According to its official project record, the EBRD approved on 22 July a loan of up to $80 million for a 500 MW plant with 100 MWh of storage. The EIB said it approved the project on 27 August, without disclosing a loan amount in its project summary.
The financing arrangement supports a longer-term industrial electricity supply. The EBRD describes a 25-year power purchase agreement with EgyptAlum, designed to make part of the manufacturer’s electricity costs more predictable. Solar generation is also expected to reduce the carbon footprint of Egyptian aluminium as environmental requirements tighten in some export markets.