Scatec has secured US$217 million to develop the first phase of Egypt’s Dandara solar project, combining 569MWp of solar power with 100MWh of battery storage. The project will supply renewable electricity to Egypt’s aluminum industry, with operations targeted for 2028.
Scatec has secured US$217 million to build the first phase of Egypt’s Dandara solar project, combining 569MWp of solar power with 100MWh of battery storage.
Norwegian renewable energy developer Scatec has secured US$217 million in non-recourse financing for the first phase of the Dandara solar project. The company has also announced the start of construction.
The project will supply renewable electricity to Egypt’s aluminium industry. It forms part of a wider 1GW solar development with 200MWh of battery storage in Qena Governorate, southern Egypt.
Dandara solar project to supply Egypt’s aluminum industry
Scatec will develop the first phase with 569MWp of solar photovoltaic capacity and 100MWh of battery storage. The company estimates that the facility will generate 1.4TWh of electricity annually. It also expects the project to avoid more than 550,000 tonnes of carbon dioxide emissions each year.
Under a 25-year power purchase agreement (PPA), the project will supply electricity to Misr Aluminium, also known as EgyptAlum. A sovereign guarantee backs the agreement.
The PPA will give EgyptAlum access to low-carbon electricity at pre-agreed prices. According to the European Bank for Reconstruction and Development (EBRD), this arrangement will also reduce the company’s exposure to fossil fuel price fluctuations.
The project could also support EgyptAlum’s competitiveness in European markets. The EBRD notes that around 60% of the company’s aluminium exports go to the European Union. Meanwhile, the EU’s Carbon Border Adjustment Mechanism entered its definitive phase in 2026, increasing the importance of emissions data and carbon-intensive production costs for affected imports.
Development banks finance the Dandara solar project
The US$217 million financing package will cover most of the first phase’s estimated US$271 million capital cost. The European Investment Bank (EIB), the African Development Bank (AfDB) and the EBRD are participating in the financing.
The EIB will provide up to US$90 million. The financing carries a guarantee from the European Union’s European Fund for Sustainable Development Plus (EFSD+).
Separately, the AfDB approved up to US$66 million. This includes US$46 million from its ordinary resources and US$20 million from the Climate Investment Funds’ Clean Technology Fund.
The Egyptian government has put the wider project’s total investment at around US$650 million. In addition, the National Bank of Egypt will hold a 20% stake. Scatec will manage engineering, procurement and construction, as well as asset management and operations and maintenance.
Second phase of Egypt’s Dandara solar project planned for 2027
The wider development will combine 1GW of solar capacity with 200MWh of battery storage across two phases. Scatec expects construction of the second phase to begin in the first half of 2027.
Meanwhile, the first phase targets commercial operations in the first half of 2028. Once operational, the project will provide EgyptAlum with a long-term source of renewable electricity and help diversify the power supply for energy-intensive industrial production.
The development is part of Egypt’s broader effort to expand renewable energy and attract investment into its electricity sector. However, the project’s eventual contribution will depend on the delivery and operation of the planned capacity.
