EBRD approves $63m for Egypt solar plant with battery storage

The European Bank for Reconstruction and Development approved $63 million, or about €54.7 million, in financing to support Dandara Solar Power's construction and operation of a 500 MW photovoltaic plant in Egypt with a 100 MWh battery storage system. The assets are located in the Nagaa Hammadi region and are aimed at improving grid stability by supplying power during peak demand as Egypt expands its renewable capacity.

The project is being developed under the EBRD-led energy pillar of Egypt's Nexus of Water, Food and Energy (NWFE) programme. The African Development Bank and the European Investment Bank are providing additional financing, alongside concessional support from the Climate Investment Funds and Canada. The package includes $10 million from the Climate Investment Funds and $7 million from Canada through the EBRD's High-Impact Partnership on Climate Action, according to the EBRD announcement dated 29 October 2026.

Scatec is the main sponsor of the project, whose components include the generation and storage assets in Nagaa Hammadi and a skills-development component in Qena Governorate. Scatec chief executive Terje Pilskog said the project will bring renewable power directly to Egyptian industry at scale and that support from the EBRD, the African Development Bank and the European Investment Bank reflects confidence in the project and in the company's work in Egypt.

The project illustrates how concessional climate finance, through the Climate Investment Funds and HIPCA partners including Canada, can be combined with support from multilateral development banks to mobilise larger investment. EBRD data indicate the project relies on selling power through a long-term purchase agreement with industrial users, a common model for renewable projects that need guaranteed revenue for years.

What do these terms mean?

Battery storage system: Batteries that hold surplus electricity when generation is high and release it when needed, helping to stabilise the grid.

Power purchase agreement: A long-term contract under which a power producer sells its output to a specific buyer at an agreed price, giving the project stable revenue.

Concessional finance: Loans or grants on better than market terms, such as lower interest or a longer repayment period, usually used for climate and development projects.