Updated on November 27, 2025- The first phase of Norway-based Scatec ASA’s 1-GW Dandara Solar Energy Project in Egypt which is located at the same place a with battery storage, is expected to enter construction stage in the second quarter of 2026.
Dandara will be installed in two identical phases. Each of the phases will incorporate 500 MW of solar photovoltaic (PV) capacity and. There will also be the establishment of a 100-MWh battery energy storage system (BESS) that will be utilised in powering Egypt Aluminium’s operations. Furthermore, according to the project’s Environmental and Social Impact Assessment (ESIA) that was released this week, the works on the projects’s site will commence after all required permits and approvals are secured.
Phase 1 Timeline
The implementation of Phase 1 of the project is expected to take approximately 15 months. This period is anticipated to be between March 2026 and June 2027.
The project will be be located in Qena Governorate, east of the Nagaa Hammadi Industrial Zone. Additionally, the Dandara complex will be operated under a 25-year, US dollar-denominated corporate power purchase agreement (PPA) with Egypt Aluminium (Egyptalum). The output from the renewable energy site is expected to meet a substantial share of the aluminium maker’s electricity demand. Also, it will help it cut its greenhouse gas emissions by up to 30%.
The Dandara Solar PV project is supported by the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfD) and the European Investment Bank (EIB).
Egypt is one of the leading countries in Africa in renewable energy development in Africa especially the solar projects. The country has quite a number of solar projects developments such as the Obelisk Solar Project, just to mention a few. Egypt’s lies along the sun belt making it a top destination for solar energy investments.
Reported on October 7, 2025
Egypt is moving forward with its green industrial transformation with the “Dandara” Solar Energy Project. This solar energy project is set to power the “Egyptalum” complex with clean energy. Furthermore, the Dandara Solar Energy Project initiative aims to decarbonise industry and enhance Egypt’s export competitiveness. Also, it will solidify Egypt’s role as a renewable energy leader.
Additionally, Ministers of Planning, Economic Development and International Cooperation, and Public Business Sector, alongside Norway’s Ambassador, witnessed the signing of Letters of Intent for the project’s funding. The “Dandara” Solar Energy Project is designed to be the region’s first large-scale industrial decarbonization effort.
Participants in Signing of the Agreement
The agreements were signed between Dandara Solar Energy Company, a subsidiary of Norway’s Scatec ASA, and international finance institutions, including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the European Investment Bank (EIB). Signatories included Mohamed Amer (Dandara Solar Energy, Scatec ASA), Mark Davis (EBRD), Guido Clary (EIB), and Abdourahmane Diaw (AfDB).
Purpose of Dandara Solar Energy Project
Furthermore, the “Dandara” project will exclusively supply electricity to the Egypt Aluminium (Egyptalum) complex that is located in Nagaa Hammadi which is a subsidiary of the Holding Company for Metallurgical Industries.
Developer of the Dandara Solar Energy Project
Furthermore, Scatec ASA will construct and operate the project for 25 years. The project is expected to reduce Egyptalum’s greenhouse gas emissions by up to 30%. This move is expected to bolster Egyptalum’s competitiveness against the European Carbon Border Adjustment Mechanism (CBAM) which is critical for Egyptian exports to Europe.
Also, Rania Al-Mashat who is the Minister of Planning, Economic Development and International Cooperation, pointed out that more than “$4bn in Financing for the Private Sector from International Finance Institutions to Implement 4.2 GW Renewable Energy Projects under the “NWFE” Program.” She noted the project “pioneers the access of Egyptian exports to the European market. This is by adapting to the European Carbon Border Adjustment Mechanism (CBAM),” and that “NWFE” projects “contribute to enhancing Egypt’s general renewable energy capacity, supporting the stability of the National Electricity Grid, and increasing foreign investment in the sector.”
Part of a Bigger Plan
Also, Al-Mashat elaborated that “Dandara”, Atom Solar Egypt Project, and other renewable energy projects are key projects under the “NWFE” Country Platform. This platform targets a 10 GW increase in Egypt’s renewable energy capacity by the year 2028. She praised the partnership between the government, international finance institutions, and Scatec. Furthermore, since its November 2022 launch, the “NWFE” program has mobilised roughly $4 billion in concessional fumding for private sector renewable energy projects totalling 4.2 GW.
Additionally, Al-Mashat added that “Dandara” will strengthen Egypt’s renewable energy capacity. Furthermore, it supports the aluminium industry’s green transformation by providing clean, cost-competitive energy which aligns with CBAM. She also mentioned that NWFE’s renewable energy projects stabilise the National Electricity Grid; the Ministry of Planning allocated EGP 6.7bn last fiscal year to connect four renewable energy projects, enhancing grid stability during summer.
Significance of the Project
Mohamed Shimi, Minister of the Public Business Sector, referred to the project as “a qualitative leap for the aluminium industry and enhances the global competitiveness of the Egyptian product.” He added that “Reducing operating costs and cutting the carbon emissions are among the main objectives of the solar project. The project aims to support sustainability and export capacity.” Shimi further stated that “The partnership with ‘Scatec’ and international institutions reflects investors’ confidence in the Egyptian economy and solidifies Egypt’s leadership in green industrial transformation.”
Shimi emphasised the project’s alignment with state plans to expand renewable energy and improve resource efficiency. He reiterated the project’s goals of reducing operating costs, increasing production efficiency, and boosting the competitiveness of Egyptian aluminium products, over 50% of which are exported, primarily to the EU.
Also, Shimi affirmed that the partnership with Scatec and international financiers demonstrates foreign investor confidence in Egypt. He concluded that the project is a pioneering model for public-private-international collaboration, positioning Egypt to lead industrial decarbonization in the region and strengthening its role in renewable energy and low-emission industry.
Factsheet
Name: Dandara Solar Energy Project
Location: Nagaa Hammadi, Qena Governorate, Upper Egypt
Purpose: To supply clean electricity exclusively to the Egypt Aluminium (Egyptalum) complex.
Significance: Designed as the region’s first large-scale industrial decarbonization project.
Environmental impact: Expected to reduce Egyptalum’s greenhouse gas emissions by up to 30%.
