AfDB Okays $170 Million Loan for Egypt’s Wind Farm Project
The African Development Bank (AfDB) has said that it has approved a loan of up to $170 million to support the development of the game-changing 1.1 GW Suez Wind Project, currently Egypt’s largest wind energy initiative.
The total project cost is estimated at $1.1 billion. The Bank’s financing is in addition to financing expected from a consortium of Development Finance Institutions (DFIs), banks, and financial institutions.
The project involves the design, construction, operation, and maintenance of a greenfield wind farm divided into two sites, each with a capacity of 550 MW, located along the Gulf of Suez. The Egyptian Electricity Transmission Company (EETC) will be the sole off-taker under a 25-year take-or-pay Power Purchase Agreement (PPA).
The project set to offset 1.71 million tons of carbon dioxide annually, contributing significantly to Egypt’s climate commitments under the Paris Agreement, and produce enough power for nearly 1.1 million households. The wind farm’s 1.1 GW capacity will mark it as the largest wind project in both Africa and the Middle East.
The project has been awarded the Golden License by the Cabinet of Egypt, recognising it as a strategic initiative for the country. This license provides a set of incentives, including streamlined approvals, to accelerate the project’s implementation and its contribution to Egypt’s renewable energy goals.
Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the AfDB said that the Suez Wind Project is a landmark development that underscores Egypt’s leadership in renewable energy and the Bank’s steadfast commitment to supporting transformative, clean energy projects across the continent.
This project not only facilitates the Government of Egypt’s efforts to achieve 42% of renewable energy in its energy mix by 2030 but also drives local economic growth and strengthens regional energy security, he said.
Exemplifies Africa’s RE Potential
Wale Shonibare, AfDB’s Director of Energy Financial Solutions, Policy, and Regulations said that as the largest wind energy project in Egypt, this initiative exemplifies the scale of renewable energy potential across Africa. It demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development, Shonibare added.
Aligned with the Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of “Light Up and Power Africa,” the Suez Wind Project reinforces Egypt’s commitment to achieve renewable energy target in its generation mix by 2030.
It also supports the AfDB’s mission to promote sustainable, inclusive, and resilient energy development across Africa.
Besides AfDB, the European Bank for Reconstruction and Development said that the project has passed the final review and pending approval and once okayed, it will be providing a loan up to $200 million for Suez Wind Energy S.A.E., a special purpose vehicle (SPV) incorporated in Egypt for the purpose of constructing and operating the 1.1 GW wind farm in the Gulf of Suez region.
