The European Bank for Reconstruction and Development (EBRD) has secured a USD 275 million syndicated loan to finance the construction and operation of a 1.1 GW wind farm in Egypt’s Gulf of Suez region. This landmark project, developed by Suez Wind, marks a major step forward in Africa’s renewable energy journey, addressing climate goals while meeting rising energy demands. 🌱⚡
Key Details of the Project
- Capacity: 1.1 GW, the largest onshore wind farm in Africa.
- Annual Generation: Over 4,300 GWh of electricity.
- Environmental Impact: Reduction of 2.2 million tonnes of CO2 emissions annually.
The wind farm will deliver clean energy at costs below conventional generation, supporting Egypt’s efforts to decarbonize its power sector. 🌬️✨
Financing Structure
The USD 275 million syndicated loan arranged by the EBRD includes:
- USD 200 million A loan provided by the EBRD.
- USD 75 million B loans syndicated to Arab Bank and Standard Chartered.
Additional financing comes from:
- African Development Bank (AfDB)
- British International Investment (BII)
- DEG (German Development Finance Institution)
- OPEC Fund for International Development
- Arab Petroleum Investments Corporation (APICORP)
This collaborative funding structure underscores the importance of international partnerships in driving impactful renewable energy projects. 🤝🌍
Suez Wind: A Joint Venture for Sustainability
The project is spearheaded by Suez Wind, a joint venture between:
- ACWA Power: A global leader in power generation and water desalination.
- HAU Energy: A renewable energy platform backed by Hassan Allam Utilities and Meridiam Africa Investments.
Suez Wind is committed to delivering Africa’s largest wind farm with state-of-the-art technology and sustainability at its core. 🏗️🔋
Alignment with Egypt’s Renewable Goals
The wind farm is part of the Nexus of Water, Food, and Energy (NWFE) programme, unveiled at COP27. This programme aims to:
- Achieve 10 GW of renewable capacity.
- Increase renewables to 42% of Egypt’s energy mix by 2030.
- Reduce reliance on fossil fuels while addressing the country’s growing energy needs. 🌱⚡
Conclusion
The Gulf of Suez wind farm represents a transformative milestone for Egypt and Africa’s renewable energy landscape. With strong international backing and innovative financing, the project demonstrates the power of collaboration in addressing climate change and meeting global energy demands.
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