• The EBRD considers a senior loan of up to $80 million for Scatec’s solar project in Egypt.

• The first phase includes a 500 MW solar plant with 100 MWh battery storage, costing $315 million.

• Egyptalum will purchase the power under a 25-year agreement to secure stable low-carbon electricity prices.

Egypt plans to build a large-scale solar power plant combined with battery storage with support from the European Bank for Reconstruction and Development (EBRD) . On April 7, the bank published a disclosure notice outlining a potential senior loan of up to $80 million for Dandara Solar Power SAE, a subsidiary of Scatec ASA.

The financing remains subject to final approval. It targets the first phase of a 500 MW photovoltaic plant coupled with a 100 MWh battery storage system in Nagaa Hammadi. Developers estimate the cost of this initial phase at $315 million.

The project represents the first half of a larger complex that aims to reach 1,000 MW of injected capacity, equivalent to about 1.1 GW of installed solar capacity across two identical phases.

Egyptalum will purchase the electricity under a 25-year power purchase agreement. The structure aims “to guarantee a predictable supply of low-carbon electricity at pre-agreed prices, thereby reducing its exposure to fossil fuel price volatility,” according to disclosed information.

Accelerating Industrial Decarbonization

The installation holds strategic importance for Egypt. It will allow Egyptalum, the country’s largest aluminum producer, to reduce the carbon footprint of its products as the European Union implements its carbon border adjustment mechanism. The company exports about 60% of its output to the EU.

At the same time, the initiative signals the emergence of large-scale renewable power agreements signed directly between independent producers and industrial buyers in Egypt.

Moreover, the project has already gained international recognition. According to BloombergNEF, the agreement between Scatec and Egyptalum ranked the Egyptian industrial group sixth globally among corporate renewable energy buyers in 2025, making it the only African company in the global top 10.

This article was initially published in French by Abdoullah Diop

Adapted in English by Ange J.A de Berry Quenum