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

CAIRO, Oct 26 (Reuters) - Egypt has signed a preliminary financing agreement with Norway's Scatec (SCATC.OL), opens new tab 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.

Reporting by Momen Saeed Atallah Writing by Muhammad Al Gebaly Editing by David Goodman