Lekela has reached financial close on its first wind project in Egypt, with construction planned to commence soon.
The 250MW West Bakr wind farm, located 30km north-west of Ras Ghareb, will be fully operational in 2021.
For the project Siemens Gamesa will install 96 of its SG 2.6-114 turbines through a turnkey engineering, procurement and construction contract and will service the wind farm for 15 years.
The plant, which form’s part of the Egyptian government’s build, own, operate (BOO) scheme, will boost the North Africa country’s wind capacity by 14%, helping it to meet its target of generating 20% of its electricity from renewable sources by 2022.
The BOO scheme includes a 67% partnership with the private sector.
West Bakr Wind joins Lekela’s portfolio of wind projects across Senegal, Ghana and South Africa, with over 1GW either in operation or construction.
Lekela chief executive Chris Antonopoulos said: “We are proud to play a part in supporting the diversification of Egypt’s generation capacity by delivering best-in-class clean energy projects.
“As our first project in Egypt, we have enjoyed working closely with partners and stakeholders, including the Egyptian Electricity Transmission Company and the New and Renewable Energy Authority, to get to this point.
“We see great opportunity to invest in wind energy in Egypt, and we look forward to working in the country for years to come.”
The project has developed a ‘community investment plan’ focusing on enterprise, education and environment initiatives.
Local employment opportunities will be created alongside skills development and training to improve future employment prospects. During peak construction, the project will employ up to 550 people.
West Bakr Wind is on an important bird migration path, so Lekela is working closely with authorities to ensure that wildlife is protected. The company is participating in a “shut down on demand” programme, meaning that when birds are detected the turbines will stop turning.
Lekela has also signed a protocol with the Egyptian Environmental Affairs Agency and its Migratory Soaring Birds project to contribute towards the funding and implementation of the Migratory Birds Monitoring training programme.
As a long-term owner-operator, Lekela has a growing team in Egypt who will be responsible for taking this project, as well as other future ones in the country, from construction into operation.
Antonopoulos added: “As a long-term operator with a long-term outlook, we are focused on delivering lasting impact. It is not enough to just invest money, which is why we focus on creating generation spanning benefits for local communities.
“West Bakr Wind is the latest milestone in our plan to achieve this.”
Egyptian Electricity Transmission Company chairman Sabah Mashaly said: “This agreement is an important step and an integral part of our ambitious new and renewable energy strategy – to generate 20% of our energy capacity from renewable energy by 2022.
“This also comes within the framework of the legislation provided by the Egyptian Government with all the involved authorities to facilitate the work of all investors in the energy sector.”
The Power Purchase Agreement, Network Connection Contract with the Egyptian Electricity Transmission Company and Usufruct Agreement were all signed in February 2019, shortly after the project received cabinet approval.
Financing has been provided by the Overseas Private Investment Corporation, the US government’s development finance institution, the International Finance Corporation and the European Bank for Reconstruction and Development.
Lekela is majority-owned by shareholders, 60% owned by Actis, the leading growth markets energy investor, and 40% by a consortium led by Mainstream Renewable Power which includes investors such as the IFC and the Rockefeller Brothers Fund.