Renewables
Scatec secures finance for Egyptian solar facility
Norwegian developer Scatec has closed $217 million in non-recourse debt to fund the initial phase of its industrial solar and storage project in Egypt.
Key points
- Scatec raised $217 million from international development lenders for the Dandara initiative.
- The initial phase comprises 569 MW of photovoltaic capacity and 100 MWh of battery storage.
- Egypt aims to generate 42 percent of its electricity from renewable sources by the end of the decade.
What happened
Norwegian renewable energy firm Scatec has finalized $217 million in non-recourse financing with the European Bank for Reconstruction and Development, the African Development Bank, and the European Investment Institute, pv magazine reported. This capital supports the first deployment stage of the Dandara project in Egypt, where construction activities have officially commenced.
According to the developer, this initial phase carries a total capital expenditure of $271 million and pairs 569 megawatts of solar generation with 100 megawatt-hours of battery storage. Commercial operations are scheduled to launch during the first half of 2028. Scatec is serving as the engineering, procurement, and construction contractor while also managing long-term plant operations and maintenance.
Ownership of the facility is divided, with Scatec holding a 56 percent stake and the National Bank of Egypt acquiring a 20 percent share. Reuters reported that the Egyptian government arranged a preliminary $650 million funding framework for the complete development earlier in the week. Once finished, the installation aims to supply approximately 1.4 terawatt-hours annually to Egypt Aluminium, helping the industrial producer comply with tighter international environmental regulations.
What comes next
Preparations for the second phase of the Dandara installation are slated to begin in the early months of 2027. Scatec continues to expand its footprint in the North African country, following the completion of its 1.1 gigawatt Obelisk solar and storage facility in August and a power purchase agreement signed in January for a 1.95 gigawatt solar array paired with 3.9 gigawatt-hours of battery capacity.
Egypt maintains a national target to derive 42 percent of its power generation from green sources by 2030. Ministry officials stated earlier in the year that authorities intend to integrate an additional three gigawatts of photovoltaic capacity alongside 600 megawatts of battery storage within the current year.
Why it matters
Industrial decarbonisation represents a critical challenge for energy-intensive sectors across the African continent. World Bank figures from 2021 indicate that Egypt's renewable share of electricity output stood at 12.2 percent, highlighting the substantial transition required to meet national ambitions. By supplying dedicated clean power to large industrial consumers like smelters, developers can help heavy industry maintain export competitiveness as international carbon border adjustments take effect. For energy investors, large-scale captive power agreements backed by multilateral lenders demonstrate a viable path for financing heavy industrial transition projects in emerging markets.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
12.2% of electricity in Egypt was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
