EBRD backs Egypt solar and storage project with U.S.$63 million financing

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EBRD backs Egypt solar financing

Highlights

EBRD provides a U.S.$63 million financing package for Dandara Solar Power's new solar PV and battery storage project in Egypt, co-financed by AfDB and EIB.
Plant will supply electricity to Misr Aluminium Company via a 25-year PPA, generate 1.47 TWh annually, and cut CO2 emissions by nearly 732,000 tonnes each year.
Investment includes a skills-development program in Qena Governorate, offering at least 100 nationally accredited green and digital training places with a minimum 25% female participation.

Project financing and supply structure

As reported by European Bank for Reconstruction and Development, the U.S.$63 million package supports Dandara Solar Power's construction and operation of the solar photovoltaic plant and battery storage system under the energy pillar of Egypt's Nexus of Water, Food and Energy programme.

The project is also co-financed by the African Development Bank and the European Investment Bank. The financing package includes U.S.$10 million of concessional finance from CIF and U.S.$7 million from Canada through the EBRD's High-Impact Partnership on Climate Action.

Electricity from the plant will be supplied to Misr Aluminium Company, EgyptAlum, under a 25-year power purchase agreement and delivered through Egypt's national transmission network. Scatec is developing the plant as the main sponsor.

Energy security and local skills impact

The facility is expected to generate about 1.47 TWh of renewable electricity a year, enough to provide electricity to more than 300,000 households, while cutting annual carbon dioxide emissions by nearly 732,000 tonnes. The battery system is expected to shift daytime solar output into peak-demand periods, improving grid stability and reducing reliance on fossil fuel-based generation.

The investment also includes a skills-development component in Qena Governorate. A nationally accredited training programme will provide green and digital skills to at least 100 participants, with women expected to make up at least 25% of trainees, and Scatec will offer up to five internships a year to graduates.

EBRD Managing Director for Sustainable Infrastructure Harry Boyd-Carpenter says the project is intended to strengthen Egypt's energy security and support long-term growth through cleaner and more reliable electricity. The EBRD says it has invested 16.1 billion euros in Egypt since beginning operations there in 2012, focusing on private-sector development, green finance, sustainable infrastructure and economic inclusion.

Our earlier article on Pakistan’s proposed Port Qasim aluminium smelter explained how AsiaPak Investments is seeking a dedicated power-supply structure built around a back-to-back power purchase agreement with CPPA-G. It also detailed how the arrangement is tied to a conditional settlement of the late payment interest dispute between CPPA-G and PQEPCL, with specific waivers, upfront payments, and approval deadlines designed to keep the structure fiscally neutral and avoid new subsidies or sovereign guarantees.

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