The Red Sea Wind Energy project in Egypt has reached financial close, project partners have said.
The $680 million project involves a 500 MW onshore wind farm in the Gulf of Suez area.
Engie, Orascom Construction, Toyota Tsusho and Eurus Energy are backing the project. Eurus is a subsidiary of Toyota Tsusho. Partners have said the plan would be the largest private wind farm in Africa. It will sell power to the Egyptian Electricity Transmission Co. (EETC) over a period of 25 years.
It should begin generating power in the second half of 2025. Orasom began construction on the wind farm in November 2022.
The European Bank for Reconstruction and Development (EBRD) issued a senior secured loan of $100mn as part of the financing. Japan Bank for International Co-operation (JBIC) and private commercial banks co-financed the sum, insured by Nippon Export and Investment Insurance.
Egypt aims to add 10 GW of renewable power between 2023 and 2028. The Red Sea Wind Energy project is a first step for this.
Robust mix
Electricity Minister Mohamed Shaker said the plan was to “make full use of the country’s renewable energy potential. To achieve this, the Egyptian government has created an environment that welcomes private sector investment and builds investor confidence to create a diverse and robust mix of international and local investors in renewable energy projects.”
Egypt has a target of reaching 42% of its power consumption from renewable energy by 2035.
“We are very proud to support this significant wind farm in the Gulf of Suez, the first for us as lead development partner for the energy pillar” of the country’s plans, said Nandita Parshad, managing director of the EBRD’s Sustainable Infrastructure Group.
“This is a milestone project that will advance a fundamental shift away from Egypt’s reliance on hydrocarbons, create new green business and employment opportunities, reduce pollution and avoid CO2 emissions. The EBRD is and will proudly continue to be one of Egypt’s key partners on its green transition journey,” Parshad said.
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