Egypt secures $275m loan for largest wind farm in Africa

Egypt has secured $275 million in funding for the construction and operation of the largest wind farm in Africa.

The loan, granted to Suez Wind, includes $200 million from the European Bank for Reconstruction (EBRD) and Development and $75 million from Arab Bank and Standard Chartered.

The project is co-financed by the African Development Bank, British International Investment, Germany’s Deutsche Investitions-und Entwicklungsgesellschaft, Opec Fund for International Development and Arab Petroleum Investments Corporation.

Located in the Gulf of Suez, the wind farm will have an installed capacity of 1.1 gigawatts (GW), delivering renewable energy at a cost below conventional power generation.

It is expected to generate over 4,300 GWh of electricity annually and reduce annual CO2 emissions by more than 2.2 million tonnes, aligning with Cairo’s commitments under the Paris Agreement.

The EBRD is a key development partner in the energy pillar of Egypt’s Nexus of Water, Food & Energy programme (NWFE) which was unveiled at Cop27.

The wind power plant is one of the first projects developed under NWFE’s energy pillar and contributes to the programme’s 10 GW renewable energy target. It supports Egypt’s broader efforts to decarbonise its fossil fuel-dominated power sector and meet renewable energy goals.

Suez Wind is a special-purpose vehicle jointly owned by Saudi-listed Acwa Power and HAU Energy, a renewable energy equity platform created by EBRD, Hassan Allam Utilities and Meridiam Africa Investments.

Egypt’s minister of planning, economic development and international cooperation Rania Al-Mashat said that funding has so far been secured for projects with a capacity of 4.7 GW.

“We are working collaboratively to meet the programme’s targets to reduce Egypt’s fuel consumption and expand clean energy projects,” she said.

Egypt is a founding member of the EBRD and has invested €13.3 billion ($13.8 billion) in 194 projects nationwide.