Published 4th November, 2026 by Jess Mills
Scatec has begun construction on the first phase of its solar power plant, which will supply electricity to the Aluminium Company of Egypt (Egyptalum).
The Norwegian energy company has signed loan agreements for the first phase of the Dandara Solar Power project in Egypt, which was first announced in 2025.
The first phase of the project comprises a 569 MW solar plant and a 100-MWh battery energy storage system.
The plant will supply renewable electricity to Egyptalum under a 25-year power purchase agreement.
Dandara will generate approximately 1.4 TWh of clean electricity and lead to abatement of more than 550,000 tonnes of CO2 emissions annually.
Egyptalum said the project would help reduce its carbon footprint and meet evolving trade-related environmental standards, as well as strengthen the appeal and competitiveness of Egyptian products in international markets.
Commercial operation for the first phase is targeted for the first half of 2028.
Scatec expects construction of the second phase to commence in H1 2027.
Scatec CEO Terje Pilskog, said: “Dandara is another major milestone in Scatec’s journey in Egypt. Building on the successful delivery of Obelisk, Africa’s largest hybrid solar and battery installation, we are now bringing the same integrated model to industrial decarbonisation at scale.
“Supplying renewable power to one of Egypt’s most energy-intensive industries under a long-term agreement backed by a sovereign guarantee demonstrate the quality of what we are building in Egypt, and the confidence that leading development finance institutions place in Scatec as a partner.”
The non-recourse project financing comprises USD 217 million and is provided by the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and European Investment Bank (EIB).
The financing amount corresponds to approximately 80% of total estimated capex for the first phase of USD 271 million.
In addition, Scatec has signed a partnership agreement with National Bank of Egypt (NBE), which will join with a 20% ownership stake in the project.
Consequently, Scatec holds a 56% ownership interest in the Dandara project; 36% through the EBRD platform and 20% outside the platform.
Scatec will deliver Engineering, Procurement, and Construction (EPC), Asset Management (AM), and Operations & Maintenance (O&M) services for the project.
Scatec’s EPC scope is approximately 80% of total capex.
Jess studied Creative and Professional Writing at university, earning her degree in 2020. Prior to joining Quartz Business Media, she worked as a freelance writer.
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