Scatec Secures $217 Million Financing For 569 MW Solar And 100 MWh BESS Project In Egypt

Scatec ASA has signed loan agreements to finance the first phase of the Dandara solar and battery energy storage project in Egypt and is commencing construction of the power plant. The project, also known as Egypt Aluminium, will combine a 569 MW solar power plant with a 100 MWh battery energy storage system (BESS) to supply renewable electricity to Egypt Aluminium under a long-term power purchase agreement (PPA).

The first phase of the project is expected to require a total capital expenditure of USD 271 million. The non-recourse project financing amounts to USD 217 million and has been provided by the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB). The financing covers approximately 80% of the estimated capital expenditure for the first phase.

Scatec has also signed a partnership agreement with the National Bank of Egypt (NBE), which will acquire a 20% ownership stake in the project. Following the NBE agreement and the recently announced EBRD transaction, Scatec holds a 56% ownership interest in Dandara. This includes a 36% stake through the EBRD platform and a further 20% outside the platform.

The company plans to bring additional equity partners into the project and secure equity bridge loans to defer its equity contribution until the end of the construction period. This approach is expected to provide greater flexibility in managing the project’s funding requirements during development and construction.

Under the project agreements, Scatec will provide engineering, procurement and construction (EPC), asset management, and operations and maintenance services. Its EPC scope represents approximately 80% of the total capital expenditure for the first phase. Commercial operations are targeted to begin in the first half of 2028.

The Dandara project will supply renewable electricity to Egypt Aluminium under a 25-year power purchase agreement backed by a sovereign guarantee. Once operational, the first phase is expected to generate approximately 1.4 TWh of clean electricity annually and reduce carbon dioxide emissions by more than 550,000 tonnes per year.

The project is intended to help Egypt Aluminium reduce its carbon footprint and meet evolving environmental requirements associated with international trade. Access to renewable electricity could also strengthen the competitiveness of Egyptian aluminium products in international markets as manufacturers face increasing pressure to reduce emissions across their supply chains.

Scatec CEO Terje Pilskog said Dandara represents another major milestone for the company in Egypt. He highlighted the company’s experience in delivering integrated solar and battery storage projects, including the Obelisk project, and said Dandara would extend this model to industrial decarbonisation.

Scatec also expects to begin construction of the second phase of Dandara in the first half of 2027. The project will further expand the company’s renewable energy activities in Egypt, supporting the country’s energy transition while providing a long-term clean electricity supply to a major industrial consumer.