Egypt: AfDB mobilizes $66 million for the first phase of the Dendera solar project

The African Development Bank (AfDB) has approved a financing of $66 million to support the first phase of the Dendera solar project, in the Qena governorate, in southern Egypt. This funding covers the design, construction, operation, and maintenance of a 500 MW photovoltaic plant coupled with an integrated energy storage system using 100 MWh batteries. The objective is to strengthen the country’s supply of clean electricity while improving grid stability, compensating for solar production intermittency, and covering periods of high demand, especially in the evening.

The financial package consists of $46 million from AfDB’s ordinary resources and $20 million in concessional financing mobilized through the Clean Technology Fund (CTF) of the Climate Investment Funds (CIF). It will be supplemented by a consortium of development finance institutions, bringing the total project cost to over $290 million.

The electricity produced will be sold to EgyptAlum (Aluminium Company of Egypt) under a 25-year Power Purchase Agreement (PPA), along with a transportation agreement with the Egyptian Electricity Transmission Company (EETC). EgyptAlum, a publicly traded company on the Egyptian Stock Exchange since 1997, is one of the main aluminum producers in Africa.

The full commissioning of the installation is scheduled for early 2028. Once operational, the plant is expected to produce around 1,373 GWh of clean electricity per year, thereby contributing to strengthening the country’s energy mix and improving its supply security.

According to AfDB, the project will avoid nearly 500,000 tons of carbon dioxide emissions each year. It is also expected to generate around 2,500 jobs during the construction phase and 23 permanent jobs during operation, with a particular focus on the professional integration of women and youth.

This operation is part of the AfDB’s 2024-2033 decade strategy, as well as its Country Strategy Paper for Egypt. It reflects the institution’s goal of promoting access to sustainable energy on the continent while mobilizing more private capital towards energy transition.