Egypt, Norway sign letter of intent to finance Dandara Solar Project

CAIRO - 6 October 2025: Egypt and Norway have signed a letter of intent to finance the Dandara Solar Power Project, which will supply clean energy to Egyptalum’s industrial complex in Upper Egypt, according to a joint statement by the Ministry of Public Enterprises and the Ministry of Planning and Economic Development.

 

The agreement was signed between Dandara Solar Energy, a subsidiary of Norway’s Scatec, a global leader in renewable energy, and three major international financial institutions: the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).

 

Under the deal, Scatec’s Egyptian subsidiary will build and operate the project for 25 years. The solar plant will provide a substantial portion of Egyptalum’s electricity needs, reducing greenhouse gas emissions by up to 30 percent. The initiative marks the region’s first large-scale industrial decarbonization project, positioning Egyptalum to maintain its competitive edge amid the EU’s Carbon Border Adjustment Mechanism (CBAM).

 

Minister of Public Enterprises Mohamed Shimi said the project represents “an unprecedented strategic milestone for Egypt’s aluminum industry,” aligning with the government’s plans to expand renewable energy use. He added that it will help lower operating costs, improve production efficiency, and strengthen the global competitiveness of Egyptian aluminum, noting that Egyptalum currently exports over 50 percent of its output, mainly to the European Union.

 

Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat emphasized that the Dandara project is part of Egypt’s Nexus of Water, Food and Energy (NWFE) program, which targets adding 10 gigawatts of renewable energy capacity by 2028.

 

She highlighted that the NWFE program supports grid stability and ensures sustainable power sources. Al-Mashat noted that her ministry facilitated EGP 6.7 billion in concessional funding during the last fiscal year to connect four renewable energy projects to the national grid, enhancing electricity stability during the summer peak period.