 |
| |
Massive Onshore Wind Farm In Egypt Reaches Financial Close | |
| Sumita Pawar |
Egypt is set to accelerate its transition to renewable power generation after the Red Sea Wind Energy Consortium announced that it had achieved financial close on the 500 megawatt (MW) Gulf of Suez 2 wind farm near Ras Ghareb.
As highlighted in the report, the project marks the first co-financing between the Japan Bank for International Corporation (JBIC) and the European Bank for Reconstruction and Development (EBRD) since the signing of a memorandum of understanding (MOU) in October 2022.
 |
The wind farm will be owned and run by the consortium, which is made up of ENGIE (35%), Orascom Construction (25%), Toyota Tsusho Corporation (20%), and Eurus Energy Holdings Corporation (20%). The Egyptian Electricity Transmission Company (EETC) has signed a 25-year power purchase agreement with the consortium.
Orascom Construction will be in charge of building the wind farm's infrastructure and electricity.
The project, which is backed by Egypt’s Ministry of Finance, will be built in two phases, with full commercial operation planned for Q3 2025.
It is capable of delivering clean power to more than 800,000 Egyptian homes and will reduce CO2 emissions by approximately 1 million tons annually, it added.
The project falls under the energy pillar of the Nexus of Water-Food-Energy (NWFE) program, an initiative presented by the Government of Egypt at COP 27 in November 2022.
Non-recourse project financing is provided by 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 EBRD. HSBC Bank Egypt S.A.E. is acting as the working capital bank and onshore security agent, as mentioned in the report.
According to the report, Red Sea Wind Energy S.A.E., the consortium behind the project, tripled its wind energy capacity in Egypt to 762.5 MW with the Gulf of Suez 2 wind farm.
The consortium also developed Egypt’s first renewable energy Independent Power Producer (IPP) project of its kind and size, which was completed in October 2019 ahead of schedule.
"ENGIE is delighted to be replicating the same partnerships as it has with the 262.5 MW Ras Ghareb wind farm for the Gulf of Suez 2, which once completed in 2025 will be one of the largest onshore wind facilities in ENGIE’s portfolio. We want to showcase ENGIE’s commitment to supporting the Egyptian government’s ambitions to transition to a lower carbon economy," said Mo Hoosen, ENGIE Managing Director Renewables AMEA & South Africa Country Manager.
According to Toshiyuki Ishikuro, Toyota Tsusho Corporation’s Chief Operation Officer for Machinery, Energy, and Project Division, "Egypt is a very important partner of ours with 90 years of business history, and we remain committed to achieving carbon neutrality in Egypt."
Khaled El Degwy, Orascom Construction Executive Director – Concessions, commented, "This project marks the joint efforts of our consortium, a strong group of international financial institutions, export agencies, and commercial banks, and EETC and NREA to deliver an important project that helps accelerate the transformation of the renewable energy sector in Egypt."
The Gulf of Suez 2 wind farm project is a significant step towards achieving Egypt’s goal of generating 42% of its electricity from renewable sources by 2035. The project will not only provide clean energy to hundreds of thousands of homes but also create jobs and boost the country’s economy, according to the report.