The European Bank for Reconstruction and Development (EBRD) has committed a $275 million syndicated loan to fund the construction and operation of Africa’s largest wind farm in Egypt’s Gulf of Suez region. The project will enhance Egypt’s renewable energy capacity, significantly contributing to the country’s ambitious clean energy goals.
A Landmark Renewable Energy Project
The syndicated loan package includes $200 million directly from the EBRD, alongside $75 million in B loans from Arab Bank and Standard Chartered. Co-financing for the project comes from a number of international financial institutions, including the African Development Bank, British International Investment, Deutsche Investitions- und Entwicklungsgesellschaft, the OPEC Fund for International Development, and APICORP.
The wind farm will have a total installed capacity of 1.1 GW, expected to generate over 4,300 GWh of electricity annually. The renewable energy produced will replace conventional power sources, reducing CO2 emissions by more than 2.2 million tonnes each year, making a significant contribution to Egypt’s environmental sustainability efforts.
Supporting Egypt’s Renewable Energy Transition
This wind farm is a key component of Egypt’s Nexus of Water, Food, and Energy (NWFE) program, which was introduced at COP27 to tackle climate change and promote sustainable development. The project aligns with Egypt’s ambitious goal of adding 10 GW of renewable energy capacity and increasing the share of renewables in the national energy mix to 42% by 2030.
The Suez Wind project, which is spearheading the construction of the wind farm, is a joint venture between ACWA Power, EBRD-backed HAU Energy, Hassan Allam Utilities, and Meridiam Africa Investments.
Promoting Private Investment and Clean Energy Initiatives
Egypt’s Minister of Planning, Rania A. Al-Mashat, emphasized the importance of this project as part of Egypt’s strategy to attract private investment into the renewable energy sector. “Through our partnership with the EBRD, we are mobilizing blended finance to drive investment in renewable energy. This project is crucial in reducing fuel consumption and advancing clean energy initiatives across the country,” said Al-Mashat.
Nandita Parshad, Managing Director of EBRD’s Sustainable Infrastructure Group, expressed pride in financing the project, noting that it positions Egypt as a regional leader in large-scale renewable energy projects. “This wind farm, following the success of Africa’s largest solar farm in Egypt, underscores the country’s continued commitment to clean energy and its leadership role in Africa’s renewable energy transition,” Parshad stated.
This new wind farm project marks another milestone in the bank’s ongoing support for Egypt’s transition to a greener, more sustainable future.
