Business

Engie’s Ras Ghareb Wind Farm to Add 150 MW

Africa’s largest wind farm, the flagship project of French multinational electricity company, located on the shores of Gulf of Suez in Ras Ghareb in Egypt, is set for expansion from the planned 500 MW to 650 MW.

The entire production of the park, which is currently under construction, will be purchased by the Egyptian Electricity Transmission Company (EETC) for 25 years and with this, ENGIE is close to develop 1 GW of renewable capacity in Egypt.

The wind farm project is being developed in collaboration with Orascom Construction, Toyota Tsusho Corporation and Eurus Energy Holdings Corporation, within the Red Sea Wind Energy consortium.

The expansion will further solidify ENGIE’s key role in advancing renewable energy development in Africa and the Middle East.

As part of this expansion, an additional agreement to the long-term Power Purchase Agreement (PPA) has been signed with EETC. This agreement guarantees revenues for the 150 MW extension and secures revenues for the entire 650 MW of the farm for 25 years.

ENGIE, which holds 35% of the Red Sea Wind Energy consortium with complementary expertise, plays a key role as the technical and project management partner of the project.

FC Achieved

The consortium has also achieved financial close for the 150 MW expansion, which is financed by the same partners who financed the original 500 MW project capacity; the Japan Bank for International Corporation (JBIC) in coordination with Sumitomo Mitsui Banking Corporation, the Norinchukin Bank, Société Générale S.A under a Nippon Export and Investment Insurance (NEXI) cover, and the European Bank for Reconstruction and Development (EBRD).

ENGIE has also confirmed that a capacity of 306 MW is now connected to the national grid as part of a first phase of the project’s commissioning, ahead of schedule. The full commissioning of the park is scheduled for the third quarter of 2025, as initially planned before the extension.

The Red Sea Wind Energy wind farm will sustainably contribute to Egypt’s energy mix, which aims for 42% of electricity produced from renewable sources by 2030, with the goal of reducing CO₂ emissions by approximately 1.3 million tons per year.

Once operational, the wind farm will generate renewable energy capable of powering more than 1 million homes. This project is the second for the consortium in Ras Ghareb after the 262.5 MW wind farm already operational since October 2019.

With this extension, ENGIE’s total wind power capacity in Egypt will reach 912.5 MW, further consolidating the Group’s leadership in the renewable energy sector in Africa and the Middle East.

Global Business Magazine

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