Egypt secures $275 mln finance for wind power plant in Gulf of Suez
This funding package, approved by the European Bank for Reconstruction and Development (EBRD), will assist a consortium of private companies in establishing the project.
The EBRD will provide $200 million, the Arab Bank will contribute $60 million, and Standard Chartered Bank will offer $15 million.
Additional support comes from several key international institutions, including the African Development Bank (AfDB), which has contributed $170 million, the OPEC Fund for International Development, which has granted $40 million, British International Investment (BII), Deutsche Investitions und Entwicklungsgesellschaft (DEG), and the Arab Petroleum Investments Corporation (APICORP).
The project is being implemented by Suez Wind, a special-purpose vehicle jointly owned by ACWA Power, a global leader in renewable energy development, and HAU Energy BV, a funding vehicle incorporated in the Netherlands for developing and operating renewable energy projects in Egypt and Africa.
The project also receives investments from the EBRD, Hassan Allam Utilities, and Meridiam Africa Investments, a global investor in sustainable infrastructure projects across Africa.
This initiative is part of Egypt's broader efforts to promote clean energy through the "NWFE" programme. The wind farm will generate over 4,300 GWh of electricity annually and reduce carbon dioxide emissions by 2.2 million tons annually.
The total project cost is estimated at around $1.1 billion. Once completed, it will provide clean power to over 1.3 million households. Construction will begin in January 2025 and end in August 2027.
“Our collaboration with the European Bank for Reconstruction and Development is helping mobilize blended financing to attract private sector investments in renewable energy, supporting Egypt’s economic development vision," Rania Al-Mashat, minister of planning, economic development, and international cooperation, said.
She further highlighted that government reforms have played a crucial role in boosting private sector investments in renewable energy, which is a priority to the ministry's economic development goals.
This project also aligns with Egypt's renewable energy transition goals. As outlined in its Nationally Determined Contributions (NDCs), the country aims to generate 42 percent of its energy from renewable sources by 2030.
In May, Egypt signed a land access agreement with an Egyptian-Emirati consortium to develop a 10 GW onshore wind farm in Upper Egypt, one of the world's largest such projects, with an estimated value exceeding $10 billion.
This project aims to produce 48,000 GWh of clean energy annually, reducing carbon emissions by nine percent and supporting Egypt's goal of sourcing 42 percent of its energy from renewables by 2030. The wind farm will create 23,000 jobs and save the country an estimated $5 billion in natural gas costs annually.