Egypt signs $680M agreement to establish wind farm in Gulf of Suez
The Egyptian Cabinet announced, Wednesday, that the Red Sea Wind Energy Consortium signed a financial closing agreement worth $680 million for a project to establish a wind farm in the Gulf of Suez with a capacity of 500 megawatts.
The cabinet added in a statement that the agreement was signed by representatives of the Red Sea Wind Energy Company and financing entities, the Japan Cooperation Bank and the European Bank for Reconstruction and Development (EBRD).
The Egyptian Minister of Electricity and Renewable Energy, Mohamed Shaker, said that this project is one of the largest wind energy projects in Egypt and Africa.
The minister explained that the role of the Red Sea Wind Energy Company is to operate and maintain the wind farm under a 25-year power purchase agreement (PPA), which it signed with the Egyptian Electricity Transmission Company.
"The station is scheduled to be connected to the national grid in two phases, with full commercial operation planned during the third quarter of 2025,” he added.
He pointed out that the Ministry of Electricity and Renewable Energy has taken many measures and launched a number of mechanisms to encourage and stimulate investment in the field of electricity generation from renewable energy through the private sector, to maximize the use of renewable energy sources and the exploitation of those natural resources.