The European Bank for Reconstruction and Development (EBRD) has secured a senior loan of up to US$100m to Egypt’s Red Sea Wind Energy to fund the development, construction and operation of a new 500MW onshore wind farm.
Egypt’s third private wind farm will be located in the Gulf of Suez area, and it is expected to be the largest in Africa.
The loan consists of a portion of up to US$50m from the EBRD and a portion of up to US$50m from the Green Climate Fund (GCF) in favour of Red Sea Wind Energy.
The loan is co-financed by the Japan Bank for International Cooperation and private commercial banks insured by Nippon Export and Investment Insurance.
This is the Bank’s first project to be co-financed by those Japanese institutions.
Red Sea Wind Energy is a joint-stock company incorporated in Egypt and owned by a consortium of sponsors, including Engie, Orascom Construction, Toyota Tsusho Corporation and Eurus Energy.
The energy generated will be sold to the Egyptian Electricity Transmission Company (EETC) over a period of 25 years.
The project is one of the first to be built under the Energy Pillar of Egypt’s Country Platform for NWFE programme, launched at COP27.
It is also the first step in the country deploying an additional 10GW of renewable energy capacity between 2023 and 2028.
Dr Mohamed Shaker, Minister of Electricity and Renewable Energy, said: “We want to harness Egypt’s natural resources and 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.
“The 500MW Gulf of Suez windfarm by the consortium of Engie, Orascom Construction, Toyota Tsusho Company, and Eurus Energy is a perfect example of what can be achieved.”