The first phase of the Dandara Project will combine a 500MW solar photovoltaic plant with a 100MWh battery energy storage system in Qena Governorate, southern Egypt.

The AfDB will provide $46 million from ordinary resources and $20 million in concessional funding from the Climate Investment Funds’ Clean Technology Fund.

Another $151 million in debt financing will be mobilised from a consortium of development finance institutions.

The financing will support the design, construction, operation and maintenance of the solar plant and integrated battery system.

The Project is expected to become fully operational in early 2028 and generate an estimated 1 373GWh of clean electricity annually.

The Aluminium Company of Egypt, one of Africa’s largest aluminium producers, will purchase all electricity generated under a 25-year Power Purchase Agreement.

The Egyptian Electricity Transmission Company will transmit electricity from the solar facility to the aluminium plant.

Battery storage will supply renewable electricity during peak evening demand and help manage fluctuations in solar generation. “By integrating large-scale solar power and battery storage into one of Egypt’s most energy-intensive industries, this investment demonstrates how renewable energy can strengthen industrial competitiveness and reduce carbon emissions,” AfDB Vice-President for Power, Energy, Climate and Green Growth Dr Kevin Kariuki said.

Kariuki said the Project could also help African manufacturers respond to changing international market requirements, including the European Union’s Carbon Border Adjustment Mechanism.

The facility is expected to reduce carbon dioxide emissions by approximately 500 000 tonnes annually.

About 2 500 jobs will be created during construction, followed by 23 permanent positions during operation. Employment initiatives will focus particularly on women and young people.

–AfDB/ChannelAfrica–