Scatec Begins Construction at Dandara in Egypt After Closing $217 Million Debt for 569 MW Phase One

Scatec ASA has signed loan agreements worth USD 217 million for the first phase of the Dandara (Egypt Aluminium) project in Egypt, clearing the way for construction of the power plant to begin.

The announcement was made on 28 October 2026.

Scatec secures financing for the Dandara project

The debt is structured as non-recourse project financing and comes from three development finance institutions: the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB). The loan amount covers roughly 80 percent of the estimated total capital expenditure for the first phase, which Scatec puts at USD 271 million.

The company's own Engineering, Procurement, and Construction (EPC) scope also represents approximately 80 percent of the total capex, and it will additionally provide Asset Management (AM) and Operations & Maintenance (O&M) services.

Scatec describes the financing as a regulatory milestone for the project and characterises Dandara as a new application of its integrated delivery model, pairing large-scale renewable generation with battery storage to serve an industrial offtaker rather than the grid alone.

What the first phase will deliver

The first phase combines a 569 MW solar plant with a 100 MWh battery energy storage system.

Under a 25-year power purchase agreement, backed by a sovereign guarantee, the facility will supply renewable electricity to Egypt Aluminium, one of the country's energy-intensive industrial companies.

When operational, the plant is expected to produce approximately 1.4 TWh of clean electricity each year and abate more than 550,000 tonnes of CO2 emissions annually.

Scatec also highlights the commercial rationale: the renewable supply is intended to help Egypt Aluminium lower its carbon footprint and meet evolving trade-related environmental standards, improving the competitiveness of Egyptian products in international markets.

Commercial operation of the first phase is targeted for the first half of 2028. Construction of the second phase is expected to start in the first half of 2027, though the company has not disclosed the size or financing of that phase in this announcement.

National Bank of Egypt joins the ownership

Together with the loan agreements, Scatec has signed a partnership agreement with National Bank of Egypt (NBE), which is taking a 20 percent stake in the project. The Egyptian bank's entry adds a domestic financial institution to the ownership structure alongside the international lenders providing debt.

Following the NBE transaction and a recently announced EBRD transaction, Scatec holds a 56 percent ownership interest in Dandara. Of that share, 36 percent is held through the EBRD platform and 20 percent outside the platform.

Scatec has also said it intends to invite additional equity partners and to secure equity bridge loans (EBLs), a structure that would defer its equity injection until the end of the construction period and reduce the capital the company must commit during the build.

A direct line to heavy industry

A distinguishing feature of Dandara is its offtake structure. Rather than selling power to a utility under a conventional government-backed arrangement, the plant is dedicated to a single industrial customer, Egypt Aluminium, under a long-term contract supported by a sovereign guarantee.

That guarantee provides security for the lenders and equity investors involved. Scatec's announcement stresses the trade dimension of the deal, noting that access to renewable electricity will help Egypt Aluminium satisfy environmental standards increasingly tied to international trade.

The company positions the project as an example of renewable energy deployed specifically for the decarbonisation needs of heavy industry, a sector where energy-intensive manufacturers face growing pressure to demonstrate lower-carbon production.

Scatec's track record in Egypt

Scatec CEO Terje Pilskog presented Dandara as a continuation of the company's presence in the Egyptian market.

"Dandara is another major milestone in Scatec's journey in Egypt," Pilskog said. "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."

According to the CEO, the combination of a long-term supply agreement with an energy-intensive industrial customer, backed by a sovereign guarantee, reflects both the quality of what Scatec is building in Egypt and the confidence that leading development finance institutions place in the company as a partner.

"Egypt is one of our most important markets, and Dandara reinforces our position as a long-term contributor to the country's energy transition," Pilskog said.

The numbers behind phase one

The key parameters of the first phase are set. The solar plant will have a capacity of 569 MW, paired with 100 MWh of battery storage.

Total estimated capex stands at USD 271 million, with USD 217 million, around 80 percent, covered by non-recourse debt from the EBRD, AfDB, and EIB. Scatec's EPC scope accounts for a further approximately 80 percent of total capex.

On the ownership side, Scatec holds 56 percent following the recent transactions, NBE holds 20 percent, and Scatec's stake is split between 36 percent through the EBRD platform and 20 percent outside it. The project is expected to deliver roughly 1.4 TWh of clean electricity and abate more than 550,000 tonnes of CO2 per year.

Construction is now underway; second-phase construction is expected to begin in the first half of 2027, and first-phase commercial operation is targeted for the first half of 2028.