USD 650 Million Financing Terms Signed for 1 GW Qena Solar Project

Preliminary financing terms worth USD 650 million have been signed for a one gigawatt solar power project in Nag Hammadi, Qena Governorate, alongside a 200 megawatt hours battery energy storage system.

Prime Minister Mostafa Madbouly witnessed the signing on October 26th. Norwegian renewable energy company Scatec signed the financing terms with the European Investment Bank, European Bank for Reconstruction and Development and African Development Bank.

The project will be developed in two phases, with each comprising 500 megawatts of solar capacity and 100 megawatt hours of battery storage. Separate agreements were also signed covering grid connection and the National Bank of Egypt’s participation in the project company.

Once operational, the development is expected to provide around one third of the electricity required by Egypt Aluminium, a subsidiary of the Metallurgical Industries Holding Company.

According to the cabinet, the project is intended to reduce emissions associated with aluminium production while improving the competitiveness of Egyptian exports as environmental requirements tighten in international markets. The agreements mark a step towards completing the project’s financing and implementation arrangements.