Egypt’s Aluminium Industry to Gain 500 MW of Solar Power Under $217 Million Dandara Project
Egypt is bringing renewable energy investment closer to its industrial base, with a new solar and battery project in the south of the country set to supply one of its largest electricity-consuming manufacturers. The Dandara development in Qena Governorate will provide EgyptAlum, the Aluminium Company of Egypt, with a dedicated source of clean power under a 25-year power purchase agreement.
The first phase combines a 500 MW solar photovoltaic plant with a 100-MWh battery energy storage system (BESS). Its significance lies not only in the additional generation capacity, but in how the electricity will be used: supporting the operations of a major aluminium producer while helping reduce the emissions associated with industrial production.
For an energy-intensive manufacturer, the timing and reliability of electricity supply matter as much as its cost and origin. Solar generation is concentrated during daylight hours, while industrial demand can extend beyond that period. The battery system is designed to store electricity and release it during evening peak periods, while also helping manage fluctuations in solar output. EgyptAlum will receive the power through the national transmission network, with the Egyptian Electricity Transmission Company (EETC) supporting its delivery.
The arrangement also connects the project to a growing commercial consideration for exporters. As international markets place greater emphasis on the carbon intensity of industrial products, access to renewable electricity can help manufacturers respond to changing requirements. The European Union’s Carbon Border Adjustment Mechanism (CBAM), in particular, makes emissions performance an increasingly relevant factor for companies exporting carbon-intensive goods.
African Development Bank Group Vice-President for Power, Energy, Climate and Green Growth, Dr Kevin Kariuki, said the integration of renewable generation and storage into energy-intensive industries could strengthen industrial competitiveness, reduce emissions and help manufacturers address evolving international requirements.
The project is being developed by Dandara Solar Power S.A.E., a special-purpose company owned by Scatec and its partners. The African Development Bank approved its participation in July 2026 and has now signed a $66 million financing agreement, comprising $46 million from its ordinary resources and $20 million from the Climate Investment Funds’ Clean Technology Fund. A further $151 million in debt financing is expected to be mobilised from a consortium of development finance institutions, bringing the planned financing package to $217 million.
The funding will support the design, construction, operation and maintenance of the solar facility and battery system. Once fully operational, which is expected at the beginning of 2028, the plant is projected to generate approximately 1,373 GWh of electricity annually.
The development is also expected to deliver employment during construction. Around 2,500 jobs are projected over that phase, with 23 permanent positions anticipated once the facility is operating. The project has identified opportunities for women and young people as part of its employment focus.
Its estimated annual emissions reduction of approximately 500,000 tonnes of CO₂ adds an environmental dimension to an investment whose commercial purpose is closely tied to industrial electricity demand.
For Egypt, the Dandara project illustrates one approach to expanding renewable generation while connecting new capacity to established productive activity. Rather than treating clean power as a separate addition to the electricity system, the project links generation, storage and industrial consumption through a long-term supply arrangement. Its performance from 2028 will provide a practical measure of how this model can support both the country’s energy transition and the competitiveness of its manufacturing sector.
