Egypt signs preliminary financing agreement on $650 million solar project in Upper Egypt

Egypt ​has signed a ‌preliminary financing agreement ​with Norway's Scatec and three multilateral development banks for a $650 ‌million solar power project in the southern province of Qena, the cabinet said on Monday.

Egypt is scaling up ‌renewable energy projects to reduce its natural gas ‌import bill, targeting a 42% share of renewable energy in its electricity generation mix by 2030. The Dandara project ⁠in ​Nagaa Hammadi ⁠city will have generation capacity of 1 gigawatt and battery ⁠storage of 200 megawatt hours, the cabinet said.

The European ​Investment Bank, European Bank for Reconstruction and Development and ⁠African Development Bank are participating in the financing arrangements while ⁠the ​National Bank of Egypt will take an equity stake in the project company. The project ⁠will be built in two phases, each adding 500 megawatts ⁠of ⁠solar capacity and 100 megawatt hours of battery storage.