📋 Tender Overview
EIB
The European Investment Bank (EIB) will provide up to $90 million, backed by the European Fund for Sustainable Development Plus (EFSD+), to support the first phase of the Dandara solar photovoltaic and battery energy storage project in Qena Governorate.
Phase 1 comprises a 569 MWp solar plant and a 100-MWh battery energy storage system supplying renewable electricity to EgyptAlum under a long-term power purchase agreement.
The EU Global Gateway flagship supports Egypt’s target of generating 42% of its electricity from renewable sources by 2030 and advances the EU-Egypt Strategic Partnership and the Trans-Mediterranean Renewable Energy and Clean Technology Cooperation Initiative (T-MED).
The European Investment Bank (EIB), through EIB Global, its development arm, is providing a loan of up to $90 million, guaranteed by the European Union EFSD+, to finance the first phase of the Dandara Solar PV and battery energy storage project in Egypt. Located in Qena Governorate, the project will expand renewable electricity generation and support cleaner industrial production in the country.
Phase 1 consists of a 569 MWp solar photovoltaic plant and an associated 100 MWh battery energy storage system. It will be developed, constructed, operated and maintained by Dandara Solar Power S.A.E., a project company that will be owned by the Norwegian renewable energy developer Scatec ASA (The Lead Developer).
The plant will supply renewable electricity to Misr Aluminium Company (EgyptAlum), Egypt’s largest aluminium producer, under a long-term power purchase agreement. EgyptAlum’s payment obligations are supported by a guarantee from Egypt’s Ministry of Finance. Based on conservative estimates, the project is expected to generate around 1,500 GWh in its first year of operation.
The EIB, backed by the EU, is financing the project alongside the European Bank for Reconstruction and Development (EBRD) and the African Development Bank (AfDB). This financing is a compelling example of the strength of the Team Europe approach. Together with the EBRD, another European lender, the EIB is financing European companies in North Africa and helping to substantially increase renewable energy generation in Egypt.
“The Dandara project is a major step forward for Egypt’s green transition. By combining large-scale solar generation with battery storage, it will deliver reliable renewable electricity for Egyptian industry, reduce dependence on fossil fuels and support cleaner aluminium production. This Global Gateway flagship also illustrates how European and African partners can mobilise long-term finance for high-impact climate investment,” said EIB Vice-President Gelsomina Vigliotti.
“Dandara builds on what Scatec recently achieved with Obelisk; now bringing renewable power directly to Egyptian industry at scale. The backing of EBRD, AfDB and EIB reflects the strength of the project and our track record in Egypt. We are proud to be delivering another landmark project in a country that has become one of our most important markets, and the confidence that leading international development finance institutions place in Scatec as a partner,” said Scatec CEO Terje Pilskog.
“Dandara brings together solar power, battery storage and industrial decarbonisation in a landmark investment for Egypt. It demonstrates the key role of the European Union in guaranteeing IFIs investments and how cooperation between the EU and international financiers can support the decarbonisation of a key industry at scale. The project will strengthen the country’s renewable energy system while enabling EgyptAlum to produce aluminium with a lower carbon footprint. Through the EFSD+ and Global Gateway, the European Union is proud to contribute to this ambitious project, reinforcing our strategic cooperation with Egypt on energy and climate,” said EU Ambassador Angelina Eichhorst.
The project supports Egypt’s ambition to generate 42% of its electricity from renewable sources by 2030. It is aligned with the EU-Egypt Strategic and Comprehensive Partnership and the Trans-Mediterranean Renewable Energy and Clean Technology Cooperation Initiative, known as T-MED. It will also help EgyptAlum reduce the carbon footprint of its production and strengthen the competitiveness of its aluminium exports.
Construction is expected to begin shortly, with commercial operations scheduled to start in April 2028. The promoters recently completed a similarly large solar PV plant adjacent to the new project ahead of schedule, giving them unrivalled experience on the ground.
Background information
EIB?Group??
The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.
Photos of the EIB Group's representatives and headquarters, logo files and video B-roll for media use are available here.?
About EIB Global
EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnerships within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through its offices across the
