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Add to Preferred SourcesThe European Bank for Reconstruction and Development (EBRD) is supporting Egypt’s energy transition and industrial decarbonization with US$ 63 million (€54.7 million) of financing to Dandara Solar Power, according to a press release published on 29 October 2026. The funding will back the construction and operation of a 500 MW solar photovoltaic plant combined with a 100 MWh battery storage system in the Nagaa Hammadi region. The facility will deliver renewable power to one of Egypt’s largest industrial producers. It forms part of the EBRD-led energy pillar of Egypt’s Nexus of Water, Food and Energy (NWFE) program. The African Development Bank and the European Investment Bank are co-financing the project.
The financing package includes US$ 10 million (€8.7 million) of concessional finance from CIF and US$ 7 million (€6.1 million) from Canada through the EBRD’s High-Impact Partnership on Climate Action (HIPCA). Developed by Scatec as the main sponsor, the project aims to strengthen Egypt’s energy security and increase renewable generation capacity. It will also help integrate more clean electricity into the national grid. The EBRD has invested €16.1 billion in Egypt since it began operating in the country in 2012. Its activities have supported private-sector development, green finance, sustainable infrastructure, and economic inclusion.
The plant is expected to generate approximately 1.47 TWh of renewable electricity annually, supplying more than 300,000 households. It will also reduce annual carbon dioxide emissions by nearly 732,000 tonnes. The battery storage system will enable solar electricity produced during the day to be supplied during peak-demand periods. This arrangement will improve grid stability and reduce reliance on fossil fuel-based generation. Electricity from the plant will be supplied to Misr Aluminium Company (EgyptAlum) under a 25-year power purchase agreement, delivered through Egypt’s national transmission network.
Harry Boyd-Carpenter, EBRD Managing Director for Sustainable Infrastructure, highlighted the project’s role in Egypt’s long-term growth.
“Expanding renewable energy capacity is critical to strengthening Egypt’s energy security and supporting long-term economic growth. This project will demonstrate how solar power and battery storage can work together to deliver cleaner and more reliable electricity while reducing greenhouse gas emissions. We are proud to work with our partners and donors to help pave the way for a more sustainable energy future,” he said.
Terje Pilskog, Chief Executive Officer of Scatec, added that the project builds on Scatec’s recent Obelisk achievement and brings renewable power directly to Egyptian industry at scale.
The investment also includes a skills-development component in Qena Governorate. A nationally accredited training program will provide green and digital skills to at least 100 participants. Women are expected to account for at least 25 percent of trainees. Scatec will also offer up to five internships annually to program graduates. The initiative reinforces how blended finance and partnerships can advance renewable energy deployment and workforce development in Egypt.