Scatec, a renewable energy solutions provider, has signed loan agreements totaling $217 million for the first phase of its Dandara solar and battery energy storage project in Egypt and is commencing construction.

The first phase comprises a 569 MW solar and a 100 MWh battery energy storage system. The project will supply renewable electricity to Egypt Aluminium under a 25-year power purchase agreement backed by a sovereign guarantee.

The European Bank for Reconstruction and Development (EBRD), African Development Bank, and European Investment Bank will provide the financing as nonrecourse project debt. The financing will cover approximately 80% of the first phase’s estimated capital expenditure of $271 million.

Scatec has also signed a partnership agreement with the National Bank of Egypt (NBE), under which the bank will acquire a 20% stake in the Dandara project.

Following the NBE agreement and a recently announced transaction involving EBRD, Scatec holds a 56% stake in the project, comprising 36% through the EBRD platform and 20% outside the platform.

According to the release, the company also plans to bring in additional equity partners and secure equity bridge loans to defer its equity contribution until the end of the construction period.

Scatec will deliver Engineering, Procurement and Construction (EPC), Asset Management, and Operations & Maintenance services for the project. Scatec’s EPC scope is approximately 80% of total capex.

Commercial operations for the first phase are expected to begin in the first half of 2028. Construction of the second phase is scheduled to commence in the first half of 2027.

Announced large-scale solar project funding increased by 75% in the first nine months of 2026 compared with the same period in 2025, according to Mercom’s recently released 9M and Q3 2026 Solar Funding and M&A report.

In February, Scatec secured financing for the 130 MW Barzalosa solar project in Colombia. In addition, the company has begun construction on the project, which is expected to reach commercial operation date in the first half of 2027. Bancolombia and Financiera de Desarrollo Nacional (FDN) are the senior lenders for the project.