Egypt has reached provisional terms to finance the Dandara Solar Power Project, a large-scale renewable energy initiative led by Scatec. The agreement marks a major milestone in expanding the country’s clean energy capacity and strengthening Africa’s renewable landscape. A letter of intent was signed between Scatec’s subsidiary, Dandara Solar Energy Company, and international lenders — 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 1.1GW of solar power and 200MWh of battery storage. Earlier this year, Scatec signed a 25-year, $650 million sovereign-backed power purchase agreement (PPA) with Egypt Aluminium, the country’s largest industrial electricity consumer and one of Africa’s key exporters to Europe. The project will also help Egypt Aluminium meet the EU’s Carbon Border Adjustment Mechanism (CBAM) requirements, set to take effect in 2026.
According to Egypt’s Minister of Planning and Economic Development, Rania Al Mashat, the Dandara initiative will boost the nation’s renewable energy capacity by around 10GW by 2028. As part of Egypt’s Nexus of Water, Food, and Energy (NWFE) Program, it reflects strong cooperation between the government, international financiers, and private developers.
Scatec already operates six solar plants at Egypt’s Benban Solar Park, contributing 400MWdc to the grid and expanding its total operational capacity in the country to about 438MWdc. The company is also advancing the 1.1GW/200MWh Obelisk solar-plus-storage project, backed by $479 million in financing from the EBRD, AfDB, and British International Investment (BII), covering about 80% of its total cost.
source: solarquarter.com
African Energy Council