Egypt Secures $650 Million for Major Solar Power Project with International Backing

Prime Minister Mostafa Madbouly on Monday evening presided over the signing of initial financing agreements for the significant Dandara solar power project. Located in Nag Hammadi, Qena Governorate, the project boasts a capacity of 1,000 megawatts and includes 200 megawatt-hours of battery storage, with total investments estimated at approximately $650 million.

The agreements were executed by the Norwegian company Scatec, alongside major financial institutions including the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the African Development Bank (AfDB). Further agreements were finalized for the project's connection to the national electricity grid and for the National Bank of Egypt to participate in the project company.

Minister of Electricity and Renewable Energy Mahmoud Esmat was also in attendance at the ceremony. The Dandara project is slated for implementation in two phases, with each phase contributing 500 megawatts of solar power capacity and 100 megawatt-hours of battery storage.

This ambitious project is designed to fulfill roughly one-third of Egypt Aluminium’s electricity requirements. By doing so, it aims to significantly reduce carbon emissions associated with aluminium production and enhance the global competitiveness of Egyptian products, especially in light of increasing environmental stipulations for exports.

The signings represent a crucial milestone in finalizing the project's financing and operational arrangements. This initiative underscores a robust collaboration between the Egyptian government, Scatec, international financial bodies, and national banks, all committed to advancing the transition to clean energy, curbing carbon emissions, and bolstering the strength of Egyptian industry and its export capabilities.