Egypt Reaches Funding Agreement for $650 Million Dandara Solar Project to Boost Renewable Energy and Support EU Export Compliance
Egypt has reached provisional terms to finance the Dandara Solar Power Project, a large-scale renewable energy development led by Scatec, marking a major milestone in the country’s transition to clean energy and reinforcing Africa’s position in the global renewable market.
A letter of intent has been signed between Dandara Solar Energy Company, a subsidiary of Scatec, and a consortium of international lenders that includes the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB).
Located in Nagaa Hammadi, Upper Egypt, the Dandara project will deliver 1.1 gigawatts (GW) of solar power capacity along with 200 megawatt-hours (MWh) of battery storage.
Earlier this year, Scatec finalized a 25-year, $650 million sovereign-backed Power Purchase Agreement (PPA) with Egypt Aluminium, the country’s largest industrial electricity consumer and a key exporter to Europe.
The agreement ensures a stable power supply while helping Egypt Aluminium comply with the European Union’s Carbon Border Adjustment Mechanism (CBAM), which will take effect in 2026.
A Key Step in Egypt’s Clean Energy Expansion
According to Rania Al Mashat, Egypt’s Minister of Planning and Economic Development, the Dandara initiative is expected to help increase the nation’s renewable energy capacity by 10GW by 2028.
As part of Egypt’s flagship Nexus of Water, Food, and Energy (NWFE) Program, the project highlights the country’s growing cooperation with international development banks and private investors to expand its green infrastructure and meet climate targets.
Scatec’s Growing Renewable Footprint in Egypt
Scatec already operates six solar plants within Egypt’s Benban Solar Park, contributing 400MWdc to the national grid and bringing the company’s total operational capacity in the country to around 438MWdc.
In addition to Dandara, Scatec is also developing the 1.1GW/200MWh Obelisk solar-plus-storage project, backed by $479 million in financing from the EBRD, AfDB, and British International Investment (BII) — funding that covers approximately 80% of the project’s total cost.
Driving Energy Security and Industrial Sustainability
The Dandara project not only enhances Egypt’s energy independence but also supports the nation’s broader sustainability and export competitiveness goals. By combining large-scale renewable generation with advanced battery storage, Egypt aims to stabilize its grid, attract foreign investment, and align industrial operations with EU environmental standards.
Once completed, Dandara will stand among North Africa’s largest solar-plus-storage projects, reinforcing Egypt’s role as a regional leader in renewable energy and green industrial development.
