Egypt signs $650m Dandara solar deals with Scatec

Cairo, Egypt - Three agreements covering the financing and delivery of the Dandara Solar Project, a solar and battery storage scheme worth about $650 million in Nag Hammadi in Qena Governorate, have been signed in the presence of Egyptian Prime Minister Mostafa Madbouly.

Norway’s Scatec is developing the project with a lender group made up of the European Investment Bank, the European Bank for Reconstruction and Development and the African Development Bank. It will combine 1,000 MW of solar generation with 200 MWh of battery storage.

Beyond the financing and implementation terms, the agreements cover the plant’s link to Egypt’s national electricity grid and a stake for the National Bank of Egypt in the project company.

Construction will be split into two equal phases, each delivering 500 MW of solar capacity and 100 MWh of storage.

The government said the plant should meet about a third of the power demand of Egypt Aluminium Company. It added that the supply would cut the carbon emissions tied to the company’s aluminium output and make Egyptian goods more competitive abroad as environmental rules tighten.

According to the government, the signing brings the financing and implementation arrangements closer to completion for one of the largest renewable energy projects in Egypt built to serve industry. It described the scheme as a joint effort by the state, international lenders, Scatec and local banks to support the shift to clean energy, lower emissions and strengthen the competitiveness of Egyptian industry and exports.

Scatec signed a 25-year power purchase agreement with Egypt Aluminium for the project in March 2025, denominated in US dollars and backed by a sovereign guarantee. At the time it described the scheme as 1.1 GW of solar with a 100 MW/200 MWh battery system.

Scatec says Egypt Aluminium is the country’s largest aluminium producer and its largest industrial electricity user, and sends about 60% of its output to Europe. It linked the plant to the producer’s plans to decarbonise and to meet the EU’s Carbon Border Adjustment Mechanism (CBAM), which it said would be introduced in 2026.

In that announcement, Scatec put total capital expenditure at about $650 million, with roughly 80% to come from non-recourse project debt and the rest from equity by Scatec and partners. It owned all of the project then and said it planned to bring in further equity partners.

Scatec is also the designated engineering, procurement and construction (EPC) provider, with an EPC share of about 90% of total capex, and will act as asset manager and operations and maintenance provider.