EXECUTIVE SUMMARY
A preliminary financing agreement has been signed for Egypt's Dandara project, combining 1,000 MW of solar capacity with 200 MWh of battery storage. Norwegian developer Scatec and three international financial institutions signed the agreement for the approximately $650 million project, which will be implemented in two phases to support Egypt Aluminium's electricity requirements.
Project Name: Dandara Solar Power Project
Developer: Scatec
Location: Nag Hammadi, Qena Governorate, Egypt
Solar Capacity: 1,000 MW
Battery Storage Capacity: 200 MWh
Total Investment: Approximately $650 million
Project Configuration: Solar + Battery Storage
Development Phases: Two
Phase 1: 500 MW solar + 100 MWh battery storage
Phase 2: 500 MW solar + 100 MWh battery storage
Norwegian renewable energy company Scatec has signed an initial financing agreement for the Dandara solar power project in Egypt, comprising 1,000 MW of solar generation capacity and 200 MWh of battery energy storage. The project is located in Nag Hammadi, Qena Governorate, and involves total investments of approximately $650 million. Egyptian Prime Minister Mostafa Madbouly attended the signing ceremony on 26 October 2026.
The agreement was signed by Scatec, the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the African Development Bank (AfDB). The preliminary financing arrangement marks progress toward completing the project's financing and implementation requirements.
The Dandara project will be developed in two phases, with battery energy storage included in each phase. The first phase will comprise 500 MW of solar generation capacity and 100 MWh of battery storage. The second phase will add another 500 MW of solar power and 100 MWh of battery storage.
Together, the two phases will provide 1,000 MW of solar generation and 200 MWh of battery energy storage. The planned storage component forms part of the project's combined solar and battery infrastructure. The announcement does not specify the battery system's power rating, chemistry, technology supplier or expected commissioning schedule.
Alongside the initial financing agreement, separate agreements were signed to connect the Dandara project to Egypt's national electricity grid. Another agreement provides for the National Bank of Egypt to contribute to the project company. Minister of Electricity and Renewable Energy Mahmoud Esmat attended the ceremony.
The project aims to meet approximately one-third of Egypt Aluminium's electricity requirements. Its solar generation and battery storage components form part of the planned electricity supply infrastructure intended to support the company's industrial operations.
According to the Egyptian government, the project is expected to reduce carbon emissions associated with aluminium production. The planned renewable electricity supply is also intended to improve the competitiveness of Egyptian products in international markets, particularly as environmental requirements for exports become increasingly important.
The financing and related agreements reflect cooperation between the Egyptian government, Scatec, international financial institutions and national banks. These arrangements support the development of the Dandara solar and battery storage project and Egypt's broader transition toward clean electricity.
The signing represents a further step toward completing financing and implementation arrangements for the approximately $650 million development. The project will combine large-scale solar generation with battery storage while supporting electricity supply requirements for Egypt Aluminium.