Multinational Consortium secures financial close agreement for $650 mln wind farm in Egypt

Ahram Online , Wednesday 5 Apr 2023

The Red Sea Wind Energy Consortium has signed a financial close agreement with a group of international banks for the second 500-megawatt Gulf of Suez Wind Farm near Ras Ghareb, with investments totaling $680 million, according to a Cabinet statement released on Wednesday.

wind energy
File Photo: Wind energy. Al-Ahram


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 new plant will be connected to Egypt's national electricity grid in two phases and is set to begin full commercial operation in the third quarter of 2025. Orascom Construction will undertake the construction of the civil and electrical works of the wind farm. The project will deliver clean power to over 800,000 homes in Egypt and accelerate the country's transition to renewable power generation.

Last December, The International Finance Corporation (IFC), a financing arm of the World Bank Group, alongside UAE, Japanese, Dutch, and private sector commercial banking partners, announced a $1.1 billion financing package for Egypt, including debt and equity. In October 2021, The Ministry of Electricity and Renewable Energy and a multinational consortium signed two agreements to launch the first wind power farm in the Gulf of Suez region with a capacity of 500 megawatts.

This new agreement reinforces Egypt's commitment to clean energy and positions the country as a leader in renewable power generation. The wind farm will not only provide clean energy but also create job opportunities and promote sustainable development.


Short link: