The European Bank for Reconstruction and Development (EBRD) is promoting renewable energy and low‑carbon technologies in Egypt by arranging a syndicated loan worth 275 million USD for the construction and operation of the largest wind farm in Africa.
The 275 million USD syndicated loan to Suez Wind consists of a 200 million USD A loan from the EBRD and 75 million USD in B loans from Arab Bank and Standard Chartered.
The new wind farm is being co-financed by the African Development Bank (AfDB), British development finance institution British International Investment (BII), German development finance institution Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the OPEC Fund for International Development (OPEC Fund) and the Arab Petroleum Investments Corporation (APICORP).
The wind farm in the Gulf of Suez region will have an installed capacity of 1.1 GW and will provide clean, renewable power at a cost below that of conventional generation.
The new wind farm is expected to generate more than 4,300 GWh of electricity annually and reduce annual CO2 emissions by more than 2.2 million tonnes, helping the country to develop an energy sector that is aligned with its commitments under the Paris Agreement.
The EBRD is the leading development partner in the energy pillar of Egypt’s Nexus of Water, Food & Energy (NWFE) programme, which was unveiled at COP27. This landmark wind power plant is one of the first projects to be developed under NWFE’s energy pillar. The project will contribute to the 10 GW renewable energy target set under NWFE and will help the government to decarbonise its fossil fuel-dominated power sector and achieve its renewable energy targets.
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Suez Wind is a special project company jointly owned by ACWA Power (an international developer and investor that co-owns and operates a portfolio of power generation and desalinated water production plants) and HAU Energy (a recently established renewable energy equity platform that the EBRD is investing in alongside Hassan Allam Utilities and Meridiam Africa Investments).
Rania A. Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, and the EBRD Governor for Egypt, said: “Egypt is committed to advancing its renewable energy ambitions, aiming to derive 42 per cent of its energy mix from renewable sources by 2030, in line with our nationally determined contributions. Through our partnership with the EBRD, a key development partner within the energy sector of Egypt’s country platform for the NWFE programme, we are mobilising blended finance to attract private-sector investments in renewable energy. So far, funding has been secured for projects with a capacity of 4.7 GW, and we are working collaboratively to meet the programme’s targets to reduce Egypt’s fuel consumption and expand clean energy projects.”
Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group, said: “EBRD is proud to be the largest financier of this landmark 1,100 MW wind farm in the Gulf of Suez, also the largest onshore windfarm in the EBRD countries of operation to date. Egypt continues to be a trailblazer for large scale renewables in Africa: first with the largest solar farm and now the largest windfarm on the continent. Great to partner on both with ACWA power and to bring new partners in this project, Hassan Allam Utilities and Meridiam.”
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012, the EBRD has invested almost 13.3 billion euros in 194 projects across the country. The EBRD’s areas of investment in Egypt include the financial and transport sectors, agribusiness, and manufacturing and services, as well as infrastructure projects in the power, municipal water and wastewater service sectors.
Source: EBRD
