EIB puts up $90M for Egypt’s Dandara solar-and-battery project
What's the deal? The European Investment Bank, through EIB Global, is lending up to $90 million for the first phase of the Dandara solar and battery project in Egypt’s Qena Governorate. The loan, guaranteed by the EU’s European Fund for Sustainable Development Plus, sits alongside financing from the European Bank for Reconstruction and DevelopmentDealroom has a profile for this one. Try Dealroom → and the African Development BankDealroom has a profile for this one. Try Dealroom →.
The specifics: The first phase pairs a 569 MWp solar plant with a 100 MWh battery system, developed by Dandara Solar Power S.A.E., a company to be owned by Norway’s Scatec. The EIB estimates first-year output of around 1,500 GWh.
Where the money goes: It funds part of a $217 million non-recourse debt package covering about 80% of the first phase’s estimated $271 million cost. Scatec said construction is starting, with commercial operations scheduled for April 2028.
Why now? The electricity will supply Misr Aluminium Company (EgyptAlum), Egypt’s largest aluminium producer, under a 25-year power purchase agreement. Egypt’s Ministry of Finance guarantees EgyptAlum’s payment obligations, addressing a key risk for lenders.
The African Development Bank said the project could help EgyptAlum stay competitive in Europe as the EU’s Carbon Border Adjustment Mechanism entered its definitive phase in January 2026. It estimated the project could safeguard more than 6,000 Egyptian jobs.
What's the endgame? The deal ties renewable power directly to industrial decarbonisation. “Battery storage is intended to make renewable power more reliable for Egyptian industry,” said EIB Vice-President Gelsomina Vigliotti. The EIB said the project aligns with Egypt’s goal of sourcing 42% of its electricity from renewables by 2030.
The signal: Dandara is less a standalone loan than evidence that development banks are backing large, storage-backed projects by leaning on long-term, guaranteed industrial offtake to make them bankable. The deal lands amid a rapid build-out of Egyptian solar-plus-storage, including EBRD financing for a 1.2 GW project in Minya and a $221 million investment platform with Scatec.
Read more: news.europawire.eu
Image credit: Generated with Gemini
