Egypt secures $21.3M in financing from EBRD to expand Gulf of Suez wind power plant
Updated 11/21/2024 3:57:00 AM
Arab Finance: The European Bank for Reconstruction and Development (EBRD) has announced $21.3 million in development financing for Egypt's Red Sea Wind Energy firm to expand the wind power plant in the Gulf of Suez, as per a statement.
This project, part of Egypt's Nexus of Water, Food, and Energy (NWFE) program, aims to enhance renewable energy capacity while advancing sustainable development goals.
The financing will support the addition of 150 megawatts (MW) to the existing 500-MW wind farm, increasing the total capacity to 650 MW.
Once completed, it will be the largest wind farm in Egypt and Africa.
The expansion is expected to reduce annual carbon dioxide emissions by approximately 1.3 million tons, contributing to Egypt's climate change mitigation efforts and national renewable energy targets.
Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat highlighted the partnership with the EBRD as pivotal to boosting private sector investments in renewable energy.
Under the NWFE program, over $2.5 billion in concessional financing has been mobilized for projects totaling 4.7 gigawatts of capacity, to reach 10 gigawatts by the program's conclusion.
This initiative aligns with Egypt’s National Climate Change Strategy 2050 and its aim to derive 42% of its energy from renewable sources by 2030.
The Gulf of Suez wind farm expansion builds on prior financing from the EBRD and the Green Climate Fund, which supported the establishment of the initial 500 MW facility.
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