Egypt has taken another step in its push for renewable energy. On Monday, the government announced the signing of a preliminary financing agreement for the Dandara solar plant, a project worth around 650 million dollars in Nagaa Hammadi, in the southern governorate of Qena.
Prime Minister Mostafa Madbouly presided over the ceremony, attended by Electricity and Renewable Energy Minister Mahmoud Esmat. Three agreements were signed. The first sets out preliminary financing terms between the project’s developer, Norway’s Scatec, and three multilateral lenders: the European Investment Bank, the European Bank for Reconstruction and Development and the African Development Bank. The second governs the plant’s connection to the national electricity grid. The third provides for the National Bank of Egypt to take a stake in the project company.
Dandara stands out for its scale. The facility is set to reach 1,000 megawatts of solar capacity, paired with a 200 megawatt-hour battery storage system. It will be built in two phases, each adding 500 megawatts of panels and 100 megawatt-hours of storage. The batteries will help smooth output and support grid stability.
The plant already has a buyer: Egypt Aluminium, the country’s largest industrial electricity consumer. In March 2025, Scatec signed a 25-year, state-backed power purchase agreement with the public company. Once operational, Dandara should cover about a third of its electricity needs. According to Scatec’s chief executive, Terje Pilskog, it is the first deal of this size struck in Egypt with an industrial buyer.
The stakes go well beyond the aluminium industry. Cairo is trying to cut its bill for natural gas imports, the main fuel for its power stations. The country is targeting a 42 percent share of renewables in its electricity generation by 2030. Several projects under development are expected to add 11,569 megawatts of wind, 7,620 megawatts of solar and 13,220 megawatt-hours of battery storage.
Dandara is part of the national Nexus of Water, Food and Energy (NWFE) programme, which brings together the state, international financial institutions and private investors. It is not Scatec’s first venture in the country. The Norwegian group is already behind Obelisk, another hybrid solar and storage complex, and has just launched a renewable energy investment platform for Egypt with the EBRD.
The next task is to turn this preliminary agreement into final financing, then break ground. If the timetable holds, Upper Egypt could host one of the continent’s largest solar plants dedicated to an industrial site.
