In an initiative that could serve as a model for large-scale renewable projects in Africa, Egypt has managed to secure a US $170M loan from the the African Development Bank for the construction of its largest wind energy project that will contribute significantly to sustainable energy development of the country.
“This landmark project underscores Egypt’s renewable energy leadership and the Bank’s commitment to transformative clean energy projects across Africa,” Kevin Kariuki, VP of the African Development Bank commented.
The initiative worth US $1.1bn billion, which will be co-financed by , other Development Finance Institutions (DFIs) and financial entities, is of strategic importance for Egypt and thanks to the Golden License designation, it’ll enjoy the priviledge of having its implementation facilitated due to the expedited approvals and incentives the Licence brings.
Constructed along the Gulf of Suez, the wind farm will spread across two 550 MW sites, producing 4,111 GWh pa – enough to power over a million households – and reducing CO₂ emissions by 1.71 million tons, hence supporting Egypt’s commitments under the Paris Agreement.
“The Suez Wind Project exemplifies Africa’s renewable energy potential and demonstrates the impact of innovative partnerships on advancing the energy transition,” said Wale Shonibare, Director of Energy Financial Solutions.
Under a 25-year take-or-pay agreement, the power generated by the wind farm, which aligns with the country’s goal of achieving 42% renewable energy in its energy mix by 2030, will be bought by the Egyptian Electricity Transmission Company (EETC).
The project, which will reinforce Egypt’s leadership in clean energy transition, will also bolster local economic development and aims to enhance regional energy security in line with the ADB’s “High 5” objectives and its New Deal on Energy for Africa.
