Renewables
Scatec secures $217m for Egyptian solar and storage project
Norwegian renewable energy firm Scatec has secured financing to build the first phase of the Dandara solar plant in Egypt.
Key points
- Scatec raised $217 million from development finance institutions for the first phase.
- The project includes a 569 MW solar facility and a 100 MWh battery storage system.
- Egypt Aluminium will purchase the generated power under a long-term agreement.
What happened
Norwegian renewable developer Scatec has finalised a financing package worth $217 million to construct the initial phase of its Dandara solar and battery storage facility in Egypt. Africa Business Communities reported that the funding covers roughly 80 percent of the total capital requirements for this stage, which is estimated at $271 million.
The European Bank for Reconstruction and Development, the African Development Bank, and the European Investment Bank provided the non-recourse debt package. Additionally, the National Bank of Egypt agreed to take a 20 percent equity stake in the installation.
The initial phase features a 569 megawatt solar park paired with a 100 megawatt-hour battery energy storage system. This infrastructure will deliver clean electricity directly to Egypt Aluminium via a 25-year power purchase agreement backed by a sovereign guarantee. Operations for this phase are slated to begin in the first half of 2028, following construction of a second phase expected to start in early 2027.
Industrial decarbonisation
The installation aims to produce approximately 1.4 terawatt-hours of electricity annually while cutting carbon dioxide emissions by upwards of 550,000 tonnes each year. According to Scatec, the initiative helps heavy industrial consumers lower their carbon intensity and adapt to tightening international environmental standards. Scatec CEO Terje Pilskog stated that the project brings an integrated renewable model to industrial decarbonisation at scale.
Why it matters
As African nations seek to balance industrial growth with global climate mandates, projects that directly supply heavy industry with captive renewable power offer a replicable blueprint. Egypt has achieved full electricity access as of 2024 according to World Bank figures, yet industrial sectors continue to face pressure to decarbonise export-oriented commodities like aluminium to remain competitive in European and global markets. For energy investors across the continent, the blended financing model involving major development banks and local commercial equity participation demonstrates a viable pathway for funding utility-scale hybrid assets.
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.
