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Green technology

Norway and Egypt Reach Provisional Terms for Dandara Solar Power Project

Strategic Insights

— 2 min read

Norway and Egypt have signed a provisional agreement to finance the Dandara Solar Power Project, a large-scale renewable energy initiative being developed and operated by Norwegian independent power producer Scatec in Egypt. The project involves the construction of 1.1GW of photovoltaic capacity and 200MWh of battery storage in Nagaa Hammadi, Upper Egypt. The project's output will help state-owned Egypt Aluminium comply with the European Union's Carbon Border Adjustment Mechanism (CBAM) and boost Egypt's renewable energy capacity by around 10GW by 2028.

Key Takeaways:

  • The Dandara Solar Power Project is being developed and operated by Norwegian independent power producer Scatec in Egypt with the aim of reducing Egypt's carbon footprint and promoting renewable energy.
  • The project involves the construction of 1.1GW of photovoltaic capacity and 200MWh of battery storage in Nagaa Hammadi, Upper Egypt.
  • The project will help state-owned Egypt Aluminium comply with the European Union's Carbon Border Adjustment Mechanism (CBAM), which comes into effect in 2026.
  • The Dandara Solar Power Project is expected to boost Egypt's renewable energy capacity by around 10GW by 2028.
  • Scatec already operates six utility-scale solar plants within Egypt's Benban Solar Park, contributing a combined 400MWdc to the grid.
  • Scatec is also advancing the 1.1GW/200MWh Obelisk solar-plus-storage project, with financing of US$479 million secured from the EBRD, AfDB, and British International Investment (BII).
  • The Obelisk project is expected to achieve commercial operation by the first half of 2026 and will add 1.1GW of renewable energy capacity to Egypt's grid.
  • The Dandara Project forms part of Egypt's Nexus of Water, Food and Energy (NWFE) Program, which promotes collaboration between the government, international financial institutions, and private developers such as Scatec.

Statistics:

  • 1.1GW: The photovoltaic capacity of the Dandara Solar Power Project.
  • 200MWh: The battery storage capacity of the Dandara Solar Power Project.
  • 10GW: The expected boost to Egypt's renewable energy capacity by 2028.
  • $650 million: The value of the sovereign-backed power purchase agreement (PPA) signed between Scatec and state-owned Egypt Aluminium.
  • 2026: The year when the European Union's Carbon Border Adjustment Mechanism (CBAM) comes into effect.
  • 400MWdc: The combined output of Scatec's six utility-scale solar plants within Egypt's Benban Solar Park.
  • 438MWdc: Scatec's total operational capacity in Egypt.
  • $479 million: The financing secured by Scatec for the Obelisk solar-plus-storage project.
  • $590 million: The total cost of the Obelisk solar-plus-storage project.
  • 561MW: The solar power capacity of the first phase of the Obelisk project.
  • 100MW/200MWh: The storage capacity of the first phase of the Obelisk project.

Sources:

  • Scatec press release (no date)
  • European Bank for Reconstruction and Development (EBRD) (no date)
  • African Development Bank (AfDB) (no date)
  • Egyptian Ministry of Planning, Economic Development, and International Cooperation (no date)
  • Global Data Point (2022)

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