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Scatec and the EBRD, EIB and AfDB signed a US$217 million non-recourse financing agreement for the first construction phase of the Dandara solar-plus-storage project in Egypt. The planned project is valued at US$650 million and is intended to supply Egypt Aluminium under a 25-year power purchase agreement.
Scatec and the EBRD, EIB and AfDB have signed a US$217 million financing agreement for the first construction phase of the Dandara solar-plus-storage project in Nag Hammadi, Egypt. The US$650 million project is designed to supply electricity to Egypt Aluminium, the country’s largest industrial electricity consumer, under a long-term power purchase agreement.
The financing is structured as non-recourse project debt and is expected to cover around 80% of the first of two planned construction phases, according to the report by Energy-Storage.News. The full project is planned to include 1GW of solar photovoltaic capacity and a battery energy storage system rated at 100MW/200MWh. The project’s total investment value was put at US$650 million in an Egyptian state announcement.
The African Development Bank is set to provide up to US$66 million of the financing: US$46 million from its ordinary resources and US$20 million in concessional funding from the Climate Investment Funds’ Clean Technology Fund. The EBRD and EIB are also among the development-bank lenders named in the agreement. The reported US$217 million debt commitment concerns the project’s first phase, not the full project cost.
Scatec aims to begin construction of the second phase in the first half of 2027. When completed, the project is expected to generate 1.4 terawatt-hours of electricity annually. Scatec holds a 56% ownership stake in Dandara and plans to provide engineering, procurement and construction, asset-management, and operations and maintenance services through its in-house teams.
Power for Egypt Aluminium
Dandara links renewable generation and battery storage to a major industrial electricity customer through a 25-year power purchase agreement signed in March 2025. For Egypt Aluminium, the arrangement is intended to provide a long-term source of electricity while supporting efforts to reduce the emissions associated with its energy use.
When the power agreement was signed, Scatec estimated that the project could reduce emissions by more than 550,000 tonnes of carbon dioxide a year. The company said that reduction could help Egypt Aluminium meet requirements tied to the European Union’s Carbon Border Adjustment Mechanism. That figure is a company estimate; the source material does not provide an independently verified emissions assessment or explain how the estimate will be measured once the plant is operating.
The financing also shows how development-bank debt is being used to support a large renewable-energy supply project for an industrial buyer. The project’s solar capacity and battery are planned together, but the available report does not specify how the battery will be dispatched or how much electricity it will shift across different hours.
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From Power Deal to Financing
The project’s financing followed earlier development steps. Scatec’s subsidiary, Dandara Solar Energy Company, signed a letter of intent in October 2025 with the three development banks for development financing, according to the report. The agreement announced in October 2026 marks a later financing milestone; the source does not say that every funding requirement for the full project has now been met.
The electricity supply arrangement was established earlier: Scatec and Egypt Aluminium signed the 25-year power purchase agreement in March 2025. At the October 26 signing event, agreements were also signed to connect Dandara to the Egyptian national grid and for the National Bank of Egypt to contribute to the project company.
Scatec has said it plans to fund the project through a combination of approximately 80% non-recourse financing and equity from the company and its partners. The report says Scatec is seeking further investors and equity bridge loans, with equity injections deferred until construction ends. Scatec holds 56% of Dandara, including a portion held through an investment platform agreed with the EBRD.
“The project’s expected annual generation will be 1.4TWh.”
— Scatec
Remaining Funding and Delivery Steps
The signed US$217 million financing agreement covers the first construction phase, while the full project is valued at US$650 million. The report says Scatec is seeking additional investors and equity bridge loans, but does not give a complete breakdown of committed funding for both phases or confirm that all financing conditions have been satisfied.
The source does not provide a final construction timetable for the first phase, a target date for commercial operation, or a detailed schedule for the second phase beyond Scatec’s aim to start its construction in the first half of 2027. It also does not specify the battery’s operating strategy, the expected split of electricity between solar generation and storage, or the grid-connection timetable.
The emissions reduction figure and the stated contribution to EU carbon-border compliance remain Scatec’s estimate and claim in the cited material. No independent verification, project-specific methodology, or confirmation of how the relevant requirements will apply to Egypt Aluminium is provided.
Construction and Grid Connection
The next reported milestones are the start of construction and completion of the project’s grid-connection arrangements. Scatec has said it hopes to begin building the second phase in the first half of 2027; the source does not give a corresponding confirmed start date for the first phase or a completion date for the overall project.
Further updates will be needed to show whether Scatec secures the remaining equity and bridge financing, when construction begins, and when the plant and battery are expected to enter service. The project’s eventual generation, delivery to Egypt Aluminium and emissions performance can be assessed only after the facilities are built and operating.
Key Questions
What financing was announced for the Dandara project?
Scatec and the EBRD, EIB and AfDB signed a US$217 million non-recourse financing agreement. The amount is reported to cover around 80% of the first construction phase.
How large is the full project?
The project is valued at US$650 million and is planned to include 1GW of solar PV and a 100MW/200MWh battery energy storage system, built in two phases.
Who will buy the electricity?
Egypt Aluminium is the intended buyer under a 25-year power purchase agreement signed with Scatec in March 2025. The company is described in the source as Egypt’s largest industrial electricity consumer.
When is construction expected to begin?
Scatec hopes to start construction of the second phase in the first half of 2027. The report does not provide a confirmed start date for the first phase or an overall project completion date.
Is the project’s emissions benefit confirmed?
No independent verification is described in the source. Scatec estimated that the project could reduce emissions by more than 550,000 tonnes of CO2 annually and said this could support Egypt Aluminium’s compliance with EU carbon-border requirements.
Source: energy-storage.news
