500 MW Gulf of Suez 2 wind farm project achieves a major milestone in Egypt

The consortium will operate and maintain the wind farm under a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC), the plant will be connected to the grid over two phases with full commercial operation planned in Q3 2025. EETC’s obligations under the PPA are backed by Egypt’s Ministry of Finance.  

The wind farm will be built, owned and operated by Red Sea Wind Energy S.A.E., which is owned by a Consortium of ENGIE (35%), Orascom Construction (25%), Toyota Tsusho Corporation (20%) and Eurus Energy Holdings Corporation (20%). Orascom Construction will execute the construction of the civil and electrical works of the wind farm.

The project will be capable of delivering clean power to more than 800,000 Egyptian homes. The project also helps accelerate Egypt's transition to renewable power generation and will reduce CO2 emissions by approximately 1 million tons annually. The project falls under the energy pillar of the Nexus of Water-Food-Energy (NWFE) program, an initiative the Government of Egypt presented at COP 27 in November 2022 that is expected to contribute toward the energy transition.

Non-recourse project financing is provided by the Japan Bank for International Corporation (JBIC) in coordination with Sumitomo Mitsui Banking Corporation, the Norinchukin Bank, and Société Générale S.A. under a Nippon Export and Investment Insurance (NEXI) cover, and the European Bank for Reconstruction and Development (EBRD). HSBC Bank Egypt S.A.E. is acting as working capital bank and Onshore Security Agent.