The African Development Bank has approved a US $170M loan for construction of largest wind energy project in Egypt.
With a total project cost of US $1.1bn billion, this initiative is Egypt’s strategic importance through the Golden License designation, which offers expedited approvals and incentives to facilitate its implementation.
The wind farm will be constructed across two 550 MW sites along the Gulf of Suez. It will produce 4,111 GWh annually, sufficient to power over one million households, while reducing CO₂ emissions by 1.71 million tons annually.
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Egypt’s 2030 goal
The Egyptian Electricity Transmission Company (EETC) will purchase the generated power under a 25-year take-or-pay agreement. In addition to the African Development Bank, other Development Finance Institutions (DFIs) and financial entities are expected to co-finance the project.
The project aligns with Egypt’s goal of achieving 42% renewable energy in its energy mix by 2030, reinforcing its leadership in clean energy transition. It bolsters local economic development and enhances regional energy security, in line with the African Development Bank’s “High 5” objectives and its New Deal on Energy for Africa. The initiative supports Egypt’s commitments under the Paris Agreement by significantly cutting carbon emissions.
“This landmark project underscores Egypt’s renewable energy leadership and the Bank’s commitment to transformative clean energy projects across Africa,” Kevin Kariuki, VP of the African Development Bank commented.
“The Suez Wind Project exemplifies Africa’s renewable energy potential and demonstrates the impact of innovative partnerships on advancing the energy transition,” said Wale Shonibare, Director of Energy Financial Solutions.
This initiative not only contributes to sustainable energy development in Egypt but also serves as a model for large-scale renewable projects across the continent.