Norway and Egypt have reached provisional terms to finance the Dandara Solar Power Project, a large-scale renewable energy initiative developed by Norwegian independent power producer Scatec in Egypt.
A letter of intent was signed between Scatec’s subsidiary, Dandara Solar Energy Company, and a consortium of international lenders — the European Bank for Reconstruction and Development (EBRD), African Development Bank (AfDB), and European Investment Bank (EIB).
Located in Nagaa Hammadi, Qena Governorate, the project will feature 1.1 GW of photovoltaic (PV) capacity and 200 MWh of battery storage. In March 2025, Scatec secured a 25-year, US$650 million sovereign-backed power purchase agreement (PPA) with Egypt Aluminium, the country’s largest industrial electricity consumer and a major EU exporter.
The Dandara project will help Egypt Aluminium meet the European Union’s Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026. Egypt’s Minister of Planning, Rania Al Mashat, noted that the project is part of a broader plan to expand Egypt’s renewable energy capacity by around 10 GW by 2028.
Dandara is integrated into Egypt’s Nexus of Water, Food, and Energy (NWFE) Program, promoting collaboration between government bodies, international financiers, and private developers. Scatec currently operates six utility-scale solar plants in Benban Solar Park, contributing a combined 400 MWdc to the national grid.
Additionally, Scatec is advancing the Obelisk solar-plus-storage project (1.1 GW / 200 MWh), with US$479 million financing secured from the EBRD, AfDB, and British International Investment (BII), covering approximately 80% of its US$590 million cost. The first phase of Obelisk will deliver 561 MW of solar and 100 MW/200 MWh of storage by the first half of 2026, with the second phase adding 564 MW later that year.
Together, the Dandara and Obelisk projects highlight Norway’s continued support for Egypt’s renewable energy transition and underscore Africa’s growing position in the clean energy investment landscape
