Officials from Norway and Egypt have agreed provisional terms for the financing of the Dandara Solar Power Project in Egypt, which is being built and operated by Norwegian independent power producer (IPP) Scatec.
A letter of intent to finance the project was signed earlier this week between Scatec’s subsidiary, Dandara Solar Energy Company, the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
In March 2025, Scatec signed a 25-year, US$650 million sovereign-backed power purchase agreement (PPA) with state-owned Egypt Aluminium for the project. The project, which was stated at the time as comprising 1.1GW of PV and 200MWh of battery storage, will supply power to Egypt Aluminium, the country’s largest industrial electricity consumer, which exports about 60% of its output to Europe.
Scatec said the power from the plant would help Egyptalum comply with the EU’s Carbon Border Adjustment Mechanism (CBAM) due in 2026. According to Egypt’s Minister of Planning, Economic Development and International Cooperation Rania Al Mashat, the plant located in Nagaa Hammadi, within the Qena Governorate of Upper Egypt, increase Egypt’s renewable energy capacity by approximately 10GW by 2028.
Launched as one of the projects under Egypt’s Nexus of Water, Food and Energy (NWFE) Program, the project is being developed in cooperation with the government, international finance institutions and Scatec.
Scatec currently operates six utility-scale solar plants at Egypt’s Benban Solar Park, with a combined capacity of 400MWdc, contributing to its total operational solar capacity of approximately 438MWdc in the country.
The company is also developing the 1.1GW/200MWh Obelisk solar-plus-storage project. The first phase will include 561MW of solar power and 100MW/200MWh of battery storage, targeting commercial operation in the first half of 2026. The second phase will add 564MW of solar capacity, expected to be operational in the second half of 2026.
Recently, Scatec secured US$479 million in financing for its Obelisk hybrid solar-plus-storage project in Egypt, provided by the EBRD, AfDB, and British International Investment (BII), covering around 80% of the US$590 million project cost. The company had previously arranged US$120 million in equity bridge loans.
