Egypt’s government announced on October 26, 2026, that Norwegian renewable-energy developer Scatec and international lenders signed preliminary financing terms for the proposed $650 million Dandara solar-and-battery project at Nagaa Hammadi in Qena Governorate. The announcement reported by Reuters covers 1,000 megawatts (1 GW) of solar generation and 200 megawatt-hours (MWh) of battery storage. This is a financing milestone, not an operating plant or confirmation that the entire investment has been paid.

Key Takeaways

• Planned total: 1,000 MW solar and 200 MWh storage in two phases.
• Estimated investment: $650 million; October 26 agreements are preliminary.
• Industrial customer: EgyptAlum, with about one-third of its electricity needs targeted.

How the Project Is Structured

Dandara is planned in two equal stages: 500 MW of solar with 100 MWh of storage per phase. The batteries store energy for later use; 200 MWh measures stored energy, not the output power of the battery system. Our earlier 40 MW/160 MWh battery coverage illustrates why MW and MWh describe different specifications.

Financing and Industrial Power

The European Investment Bank, European Bank for Reconstruction and Development (EBRD) and African Development Bank are involved in the financing discussions. Egypt’s National Bank of Egypt is also set to participate in project equity. Separately, the EBRD’s Dandara project disclosure describes up to $80 million in senior lending for the first 500 MW/100 MWh phase, not for the whole 1 GW project.

Scatec and EBRD also announced a separate investment platform on October 22 with up to $221 million committed across multiple Egyptian renewable projects, including Dandara’s first phase. That portfolio commitment must not be added to the $650 million headline as if it were another Dandara-only payment.

The planned electricity is intended for EgyptAlum, a major aluminium producer, and is expected to eventually cover roughly one-third of its electricity needs. A long-term power purchase agreement (PPA) would support predictable industrial energy procurement; our PPA explainer describes that financing structure. The project could reduce fossil-fuel dependence and industrial emissions if constructed as proposed.

What Happens Next

Dandara should not be confused with Scatec’s separate Obelisk project, which Scatec’s Egypt portfolio also includes. Obelisk entered full commercial operation in August 2026, whereas Dandara remains under development. Solar nameplate capacity likewise does not indicate continuous 1 GW generation; see our capacity-factor guide. Final financing, construction progress, grid connection and commissioning remain the milestones to watch.

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