EBRD to provide $63 million for first phase of Egypt's Dandara solar and storage project

what happened

The European Bank for Reconstruction and Development (EBRD) said on Wednesday it will lend $63 million for the first phase of the Dandara solar and battery storage project. Norwegian developer Scatec is building the project in Qena governorate in southern Egypt, according to Reuters.

The first phase includes a 569-megawatt solar photovoltaic plant and a 100-megawatt-hour battery storage system. Alongside the EBRD, the African Development Bank has approved up to $66 million, a package agreed in July 2026, and the European Investment Bank is providing up to $90 million. The power will go to Egypt Aluminium under a 25-year purchase agreement backed by a sovereign guarantee.

Scatec previously estimated capital spending for the first phase at $271 million. Construction has started, and commercial operations are targeted for the first half of 2028. The project supports Egypt's goal of generating 42 percent of its electricity from renewable sources by 2030.

why it matters

For markets, the deal is mainly relevant to the sector: it matters for renewable power in Egypt, but it is small next to large energy contracts. The long-term offtake contract with a sovereign guarantee and the participation of several international lenders show that investors are willing to back such projects.

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