The Board of Directors of the African Development Bank has approved a loan of up to $170 million to support the development of the game-changing 1.1 GW Suez Wind Project, currently Egypt’s largest wind energy initiative.
The project is estimated at $1.1 billion.
The Bank’s financing is in addition to financing expected from a consortium of Development Finance Institutions (DFIs), banks, and financial institutions, a statement issued by AfDB said.
The project has been awarded the Golden License by the Cabinet of Egypt, recognizing it as a strategic initiative for the country. This license provides a set of incentives, including streamlined approvals, to accelerate the project’s implementation and its contribution to Egypt’s renewable energy goals.
Commenting on the project, Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, said: “The Suez Wind Project is a landmark development that underscores Egypt’s leadership in renewable energy and the Bank’s steadfast commitment to supporting transformative, clean energy projects across the continent. This project not only facilitates the Government of Egypt’s efforts to achieve 42 percent of renewable energy in its energy mix by 2030 but also drives local economic growth and strengthens regional energy security.”
Wale Shonibare, the Bank’s Director of Energy Financial Solutions, Policy, and Regulations added: “As the largest wind energy project in Egypt, this initiative exemplifies the scale of renewable energy potential across Africa.
It demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development.”
The project involves the design, construction, operation, and maintenance of a greenfield wind farm divided into two sites, each with a capacity of 550 MW, located along the Gulf of Suez. The Egyptian Electricity Transmission Company (EETC) will be the sole off-taker under a 25-year take-or-pay Power Purchase Agreement (PPA).
The wind farm is expected to generate 4,111 GWh annually, supplying clean, reliable, and affordable energy to over one million households.
It will reduce annual CO₂ emissions by approximately 1.71 million tons, contributing significantly to Egypt’s climate commitments under the Paris Agreement.
Aligned with the Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 objective of “Light Up and Power Africa,” the Suez Wind Project reinforces Egypt’s commitment to achieving 42 percent renewable energy in its generation mix by 2030.
It also supports the African Development Bank’s mission to promote sustainable, inclusive, and resilient energy development across Africa.
Source: https://energynewsafrica.com