Project Highlights
Infinity Power, a joint venture between Masdar (majority shareholder) and Egypt’s Infinity, has achieved financial close for the 200 MW Ras Ghareb onshore wind farm, located in the Gulf of Suez near Ras Ghareb. The project is backed by a long-term PPA with the Egyptian Electricity Transmission Company (EETC), and supported by a sovereign guarantee via Egypt’s Ministry of Finance. 🌬️🔋🇪🇬
Key Metrics & Timeline
- Annual generation: Approximately 810,000 MWh of clean electricity
- CO₂ emissions avoided: Roughly 400,000 tonnes per year
- Construction start: September 2025
- Commercial operations anticipated: mid-2027
Strategic Significance
- Expands Infinity Power’s Egyptian portfolio, alongside its existing 252 MW West Bakr wind farm.
- Advances Infinity Power’s pan-African ambitions: targeting 10 GW of operational renewable energy capacity by 2030, which could power up to 12 million homes and reduce emissions by 15–20 million tonnes annually.
- A pivotal step for Egypt’s energy transition: aligning with its aim to significantly expand renewables in its energy mix, including a target of 42% by 2035. 🌍📈🇪🇬
Why This Matters – From a Financial Modeller’s Lens 📊💡📉
1. Structured Financing Facility
EBRD is providing a senior loan of approximately USD 64.7 million (EUR 60.5 million) to facilitate development and construction—offering a solid example of how blended finance can de-risk large-scale renewable projects in emerging markets. 💰📑📉
2. Robust Revenue Modeling via PPA
The long-term PPA with EETC ensures predictable cash inflows, directly enhancing the project’s Net Present Value (NPV) and lowering the Weighted Average Cost of Capital (WACC). 📈🧾🔍
3. Environmental and Social Compliance
An Environmental and Social Impact Assessment (ESIA) has been carried out—critical for both permitting and attracting developmental finance. 🌿⚖️📋
4. Attractive Capacity Factor & Site Conditions
Ras Ghareb offers high and stable wind speeds—estimated wind speeds at 100 m elevation range between 8–10 m/s. This yields strong capacity factors, a key driver in forecasting Annual Energy Production (AEP) and optimizing project returns. 🌬️🌀🇪🇬
Next Steps for Project and Financial Stakeholders 🚀📊📁
- Detailed Cash Flow Modeling: Segment construction-phase outflows and revenue ramp-up per quarter.
- Scenario & Sensitivity Analysis: Model variables like wind resource variability, FX exposures, and interest rate shifts.
- Leverage Financial Templates: For wind projects, modellers should consider using the Wind Energy Project Finance Model on Eloquens to structure assumptions, scenario cases, and IRR simulations.
- Monitor Treasury and Policy Signals: Stay attuned to global and local policy shifts—especially Egypt’s evolving renewables goals, which may impact future funding or project rollouts.
This project represents a notable blend of strategic development and financial structuring in emerging-market renewables. If you’re interested in modeling this in-depth or comparing similar cases across regions, I’d be glad to delve deeper. 🌱📉🇪🇬
Finteam 