EGYPT – The European Bank for Reconstruction and Development (EBRD) has committed US$21.3 million to Red Sea Wind Energy to support the expansion of Egypt’s renewable energy sector.
The funding will facilitate the development and construction of a 150 MW extension to the 500 MW wind farm currently under construction in the Gulf of Suez region.
This latest financing builds on an earlier loan provided in 2023 by the EBRD and the Green Climate Fund, aimed at the initial 500 MW project.
Upon completion, the expanded wind farm will boast a total capacity of 650 MW, making it the largest wind farm in both Egypt and Africa.
This milestone project is anticipated to reduce annual CO2 emissions by 1.3 million tonnes, aligning with Egypt’s climate goals.
Red Sea Wind Energy, an Egyptian joint-stock company, is owned by a consortium comprising Engie, Orascom Construction, Toyota Tsusho Corporation, and Eurus Energy.
The EBRD plays a pivotal role in Egypt’s renewable energy initiatives through the Nexus on Water, Food, and Energy (NWFE) programme, launched during COP27.
This wind farm marks one of the flagship projects under NWFE’s energy pillar, contributing significantly to the programme’s 10 GW renewable energy target.
H.E. Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation, highlighted the fruitful partnership with the EBRD, which has mobilized over US$2.5 billion in concessional financing for renewable energy projects with a combined capacity of 4.7 GW.
She affirmed the country’s commitment to achieving its renewable energy target of 42% by 2030, in line with the National Strategy for Climate Change 2050.
Nandita Parshad, Managing Director of EBRD’s Sustainable Infrastructure Group, lauded the expansion as a testament to global collaboration.
“This project unites experienced sponsors across three continents where the EBRD operates, showcasing our shared commitment to fostering a sustainable economy in Egypt. Its completion as Africa’s largest wind farm during COP29 underlines its importance,” said Parshad.
Since commencing operations in Egypt in 2012, the EBRD has invested over €12.5 billion (US$13.14bn) in 187 projects spanning financial services, agribusiness, manufacturing, energy, and infrastructure, bolstering the nation’s economic development and sustainability efforts.
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