Scatec ASA has signed loan agreements for the first phase of the Dandara Egypt solar and BESS project and is starting construction of the facility. The project comprises a 569 MW solar power plant and a 100 MWh battery energy storage system (BESS), which will supply renewable electricity to Egypt Aluminium under a 25-year power purchase agreement backed by a sovereign guarantee.
The USD 217 million in non-recourse financing has been provided by the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB) and the European Investment Bank (EIB). The financing represents approximately 80% of the first phaseโs estimated USD 271 million capital expenditure.
Scatec has also signed a partnership agreement with the National Bank of Egypt (NBE), which will take a 20% ownership stake in the project. The Dandara development adds to Scatecโs renewable energy activities in Egypt and supports the country’s industrial decarbonisation efforts.
Financing Supports Solar and Battery Construction
The first phase is expected to generate approximately 1.4 terawatt-hours (TWh) of electricity annually and avoid more than 550,000 tonnes of carbon dioxide emissions each year. The renewable power supply is intended to help Egypt Aluminium reduce its carbon footprint, meet evolving trade-related environmental standards and strengthen the international competitiveness of its products.
Following the NBE and recently announced EBRD transactions, Scatec holds a 56% ownership interest in the Dandara project. This comprises a 36% interest through the EBRD platform and a further 20% outside the platform. Scatec plans to invite additional equity partners and secure equity bridge loans, allowing it to defer its equity injection until the end of the construction period.
Scatec to Deliver Engineering and Operations Services
Scatec will provide engineering, procurement and construction (EPC), asset management, and operations and maintenance services. Its EPC scope represents approximately 80% of the first phaseโs total capital expenditure.
Commercial operation of the first phase is targeted for the first half of 2028. Scatec also expects to begin construction of the project’s second phase in the first half of 2027.
The development expands Scatecโs role in Egyptโs renewable energy sector, combining project financing, construction and long-term operational services. The Egypt solar and BESS project is designed to supply renewable electricity to Egypt Aluminium while contributing to the company’s emissions-reduction objectives.
Dandara Advances Industrial Decarbonisation
Scatec CEO Terje Pilskog said the project builds on the company’s experience delivering integrated solar and battery storage developments in Egypt, including Obelisk, which Scatec describes as Africaโs largest hybrid solar and battery installation.
โDandara is another major milestone in Scatecโs journey in Egypt. Building on the successful delivery of Obelisk, Africaโs largest hybrid solar and battery installation, we are now bringing the same integrated model to industrial decarbonisation at scale. Supplying renewable power to one of Egyptโs most energy-intensive industries under a long-term agreement backed by a sovereign guarantee demonstrate the quality of what we are building in Egypt, and the confidence that leading development finance institutions place in Scatec as a partner. Egypt is one of our most important markets, and Dandara reinforces our position as a long-term contributor to the countryโs energy transition,โ says Scatec CEO Terje Pilskog.
The project brings together international development finance institutions, a national banking partner and a renewable energy developer to fund the first phase of a large-scale solar and storage facility. With construction starting and commercial operation targeted for 2028, the next stage will focus on delivering the planned generation and storage capacity.