$217 Million in Financing Launches Construction of First Phase of Egypt’s Dendera Solar Project
Key Facts
Scatec said on October 28, 2026, that it had signed $217 million in non-recourse financing agreements for the first phase of the Dendera solar power and electricity storage project in Egypt, and that construction had begun. The financing covers about 80% of the phase’s estimated capital expenditure of $271 million. The loans are being provided by the European Bank for Reconstruction and Development, the African Development Bank and the European Investment Bank, according to the company’s statement. Non-recourse financing means repayment of the loans depends on the project’s assets and cash flows under the announced financing structure. The project combines a solar plant and a battery system, as part of arrangements to supply renewable electricity to Egypt Aluminum.
The first phase includes a 569-megawatt solar plant, along with a battery energy storage system with a capacity of 100 megawatt-hours. According to Scatec, the renewable electricity will be supplied to Egypt Aluminum under a 25-year power purchase agreement. The agreement is backed by a sovereign guarantee, the company said. The arrangement puts a specific industrial buyer at the heart of the project and links electricity sales revenue to a long-term contract. The batteries will store the electricity generated alongside output from the solar plant, as part of the phase’s infrastructure, construction of which has begun.
Scatec estimates that the Dendera project will generate about 1.4 terawatt-hours of clean electricity annually and avoid more than 550,000 tons of carbon dioxide emissions each year. The company presents these estimates in the context of supplying renewable electricity to Egypt Aluminum. The company’s chief executive said Dendera applies its integrated solar and storage model to industrial decarbonization "at scale." According to the company’s description, the model combines solar generation and storage in one project. These figures are among the project’s announced projections, while the first phase remains under construction.
The announcement also includes a change in the project’s ownership structure, with the National Bank of Egypt joining with a 20% stake. Scatec said its stake in Dendera will be 56% following the transactions involving the National Bank of Egypt and the European Bank for Reconstruction and Development that the company cited. The National Bank of Egypt’s entry as a local partner with a disclosed stake comes alongside phase financing from European and African development institutions. The 56% figure refers to Scatec’s ownership in the project after those transactions, according to the statement. This comes as the first phase moves from financing arrangements to the start of construction.
The Dendera announcement comes as Scatec cut its 2026 estimate for earnings before interest, taxes, depreciation and amortization from power generation by 300 million Norwegian kroner, to a range of 3,300 to 3,600 million kroner. The company attributed the reduction to disruptions and delayed repairs in Ukraine, the suspension of the electricity reserve market in the Philippines, and delays in connecting batteries in South Africa. It also cited the possibility of delayed tariff settlements in Pakistan and weaker operating currencies against the krone. The company said it would provide further financial updates during its third-quarter results presentation on October 30, 2026. The project targets commercial operation of the first phase in the first half of 2028, while Scatec expects construction of the second phase to begin in the first half of 2027.