Original Coverage & Source Attribution: egyptoil-gas.com
The financing, provided by the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB), will cover around 80% of the first phase’s estimated $271 million capital expenditure.
“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 decarbonization at scale,” said Terje Pilskog, CEO of Scatec.
He added that supplying renewable power to one of Egypt’s most energy-intensive industries under a long-term agreement backed by a sovereign guarantee demonstrates the quality of the company’s projects and the confidence of leading development finance institutions in Scatec.
The first phase comprises a 569-megawatt (MW) solar power plant and a 100-megawatt-hour (MWh) battery energy storage system (BESS) that will supply renewable electricity to Egypt Aluminium under a 25-year power purchase agreement (PPA) backed by a sovereign guarantee, according to the company’s release.
The project is expected to generate around 1.4 terawatt-hours (TWh) of clean electricity annually and avoid more than 550,000 tons per year (t/y) of carbon dioxide emissions, helping Egypt Aluminium reduce its carbon footprint and strengthen the competitiveness of its products in international markets.
Scatec has also signed a partnership agreement with the National Bank of Egypt (NBE), which will acquire a 20% stake in the project. Following the NBE agreement and a previously announced EBRD transaction, Scatec holds a 56% ownership interest in Dandara.
The company will provide engineering, procurement, and construction (EPC), asset management, and operations and maintenance services. Its EPC scope accounts for around 80% of the first phase’s total capital expenditure.
Commercial operations for the first phase are targeted for the first half (H1) of 2028, while construction of the second phase is expected to begin in H1 of 2027.
Scatec reached in August the Commercial Operations Date (COD) for the second and final phase of its 1.1-gigawatt (GW) Obelisk solar and battery storage project in Nagaa Hammadi, bringing the full project into operation.
Scatec develops, builds, owns, and operates renewable energy plants, with 6.6 GW of generation and 2 GWh of storage capacity in operation and under construction across five continents.
