Egypt secures $275M for Africa’s largest wind power project

CAIRO – 24 December 2024: The European Bank for Reconstruction and Development (EBRD) has announced a $275 million joint financing package to support the development of Africa’s largest wind power plant in Egypt. With a capacity of 1.1 GW, the project underscores Egypt’s commitment to renewable energy expansion and carbon emissions reduction under the "NWFE" program.

 

The financing includes $200 million from the EBRD, $60 million from the Arab Bank, and $15 million from Standard Chartered Bank, with additional contributions from the African Development Bank (AfDB), British International Investment (BII), Deutsche Investitions und Entwicklungsgesellschaft (DEG), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP).

 

Set in the Gulf of Suez, the wind farm will generate over 4,300 GWh of electricity annually, cutting carbon dioxide emissions by more than 2.2 million tons. It will provide clean, renewable, and cost-effective energy, significantly bolstering Egypt’s transition to sustainable energy sources.

 

The project, implemented by Suez Wind, is a private consortium jointly owned by ACWA Power and HAU Energy, with investments from EBRD, Hassan Allam Utilities, and Meridiam Africa Investments.

 

“Egypt is committed to advancing its renewable energy goals, aiming to achieve 42% of its energy mix from renewable sources by 2030, in line with its Nationally Determined Contributions (NDCs). Through our partnership with the EBRD, blended financing is being mobilized to attract private sector investments in renewable energy. So far, financing has been secured for projects with a combined capacity of 4.7 GW, and efforts continue to meet the program’s objectives of reducing fuel consumption and expanding clean energy projects,” said Al-Mashat.

 

Al-Mashat highlighted the impact of the government’s structural reforms in bolstering private sector investments in renewable energy and stressed the ministry's commitment to empowering the private sector as a key driver of economic development. She also praised the EBRD’s innovative approach to mobilizing local and international private sector contributions.

 

This milestone project aligns with Egypt’s goal to achieve 42% renewable energy in its energy mix by 2030 and contributes to global efforts against climate change under the Paris Agreement.