Scatec Secures USD 217m for Egypt’s Dandara Solar and Battery Project

Thursday 29th October 2026

By inAfrika Newsroom

Scatec has signed USD 217 million in loan agreements for the first phase of Egypt’s Dandara solar and battery project and says construction is starting. The company announced the milestone on 28 October 2026, with commercial operation targeted for the first half of 2028.

The non-recourse project loans come from the European Bank for Reconstruction and Development, African Development Bank and European Investment Bank. Scatec puts the first phase’s estimated capital expenditure at USD 271 million, meaning the loans cover roughly four fifths of that amount.

Egypt Aluminium is to buy the electricity under a 25-year power purchase agreement backed by a sovereign guarantee. Scatec also announced that National Bank of Egypt would take a 20% ownership stake in the project, while the developer’s interest would stand at 56% after the recently announced transactions.

The EBRD’s project documentation describes a 500 MW alternating-current solar installation and a 100 MWh battery system at Nagaa Hammadi. Scatec’s latest announcement describes the solar plant as 569 MW, so the two capacity figures should not be added together.

The distinction between generation and storage also matters. Megawatts describe power capacity, while megawatt-hours describe stored energy; a battery’s energy rating alone does not establish how long it can supply an aluminium plant at its full load.

The industrial significance lies in connecting long-term electricity procurement with manufacturing competitiveness. The EBRD identifies lower-carbon production and more predictable power pricing as objectives, but financing and construction milestones do not demonstrate those benefits have already been achieved.

Commissioning, actual electricity deliveries and verified operating performance will be the next tests. African manufacturers considering similar arrangements will need to assess the power contract, grid interface and its financing, and storage service together, rather than judging the project by its headline financing alone.