Egypt has finalized a $4 billion agreement with major international lenders to develop the Dendera Solar Energy Project — a large-scale renewable initiative aimed at supplying clean electricity to the Aluminium Company of Egypt (EgyptAlum) and reducing its carbon emissions by nearly 30 percent.
The letters of intent were signed between the Dendera Solar Energy Company and three global financial institutions: the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).
The signing ceremony was attended by Minister of Public Business Mohamed Shimi, Minister of Planning and International Cooperation Rania Al-Mashat, and Norway’s Ambassador to Egypt, Erik Høeg.
The project will be developed and operated by Norwegian renewable energy firm Scatec ASA through its Egyptian subsidiary under a 25-year agreement. It represents one of the first large-scale efforts to decarbonize Egypt’s industrial sector, expected to significantly cut EgyptAlum’s dependence on fossil fuels while helping it remain competitive in the European market under the EU’s Carbon Border Adjustment Mechanism (CBAM).
“This marks a major milestone for Egypt’s aluminum industry,” said Minister Shimi. “It reflects the government’s commitment to renewable energy and strengthens EgyptAlum’s global standing.”
According to Minister Al-Mashat, the project falls under Egypt’s NWFE platform, which targets the addition of 10 gigawatts of renewable energy capacity by 2028. Since its inception in 2022, the platform has already attracted $4 billion in concessional funding for clean energy projects totaling 4.2 GW.
She added that the Planning Ministry allocated EGP 6.7 billion last fiscal year to connect four renewable energy projects to the national grid, improving electricity stability during high-demand periods.
Scatec’s Executive Vice President Mohamed Amer signed the deal alongside representatives from EBRD, AfDB, and EIB.
In September, President Abdel-Fattah El-Sisi held talks with executives from Scatec and China’s Sungrow on expanding green investments, including a proposed 10-gigawatt battery storage project.
Earlier this year, Scatec signed a 25-year, dollar-denominated power purchase agreement with EgyptAlum for a 1.1 GW solar PV and 100 MW/200 MWh battery storage facility, backed by a sovereign guarantee.
The Dendera project is part of Egypt’s broader strategy for sustainable industrial growth. By providing reliable, eco-friendly energy, it supports Egypt’s shift toward a green economy and strengthens the aluminum sector’s global competitiveness in line with the nation’s Vision 2030 goals.
