Dandara solar plant receives funding

The Dandara solar power plant, which is designed to meet about one-third of Egypt Aluminium’s electricity needs, has received a preliminary financing agreement worth approximately 650 million dollars. The project is part of Egypt’s broader strategy to diversify its energy supply and reduce reliance on natural gas.

Project details and location

Located in Nag Hammadi, within the Qena governorate in southern Egypt, the Dandara plant will have a solar capacity of 1000 megawatts (MW) and include a battery storage system of 200 megawatthours (MWh). The project is planned in two phases, each with 500 MW of solar power and 100 MWh of storage.

International and local partners

The project involves several international financial institutions, including the European Investment Bank, the European Bank for Reconstruction and Development, and the African Development Bank. The Norwegian company Scatec is also involved, and the National Bank of Egypt is expected to take a stake in the project’s company.

Environmental and economic goals

The Dandara plant is expected to reduce carbon emissions from aluminum production, a sector that heavily relies on electricity. This aligns with growing international demands for environmentally friendly production processes, which could enhance the competitiveness of Egyptian exports.

Egypt’s energy challenges

Egypt’s electricity sector is still heavily dependent on fossil fuels, with natural gas accounting for about 75% of electricity production in 2025, according to the International Energy Agency. Solar and wind energy currently contribute about 7% of the country’s electricity needs, highlighting the challenge of transitioning to cleaner energy sources.

Government renewable energy targets

Egypt aims to increase the share of renewable energy in electricity production to 45% by 2028, up from an earlier target of 42% by 2030. Prime Minister Mostafa Madbouly has set an even more ambitious goal of reaching 50% by 2030. To achieve these targets, Egypt is advancing several projects that will add significant solar and wind capacity, along with battery storage.