In Egypt’s Suez, ACWA Power has obtained USD 692.05 million in funding for a 1,100-megawatt (MW) wind power plant.
The company said in a statement posted on the Saudi stock exchange that the funding was obtained from the African Development Bank, British International Investment, DEG – Deutsche Investitions, OPEC Fund for International Development, Arab Petroleum Investments Corporation, and the European Bank for Reconstruction and Development (EBRD).
EBRD’s B loan structure was also used by Arab Bank and Standard Chartered Bank to finance the senior debt. The loan will be used for the plant’s development, construction, operation, and maintenance in Egypt. It has a 20-year term.
Through the project, EBRD will be advancing its alternative energy and low-carbon technologies in the North African nation by facilitating a syndicated loan of USD 275 million for the construction and operation of Africa’s largest wind farm.
This new wind farm project is co-financed by several development institutions, including the African Development Bank (AfDB), British International Investment (BII), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP).
The facility will have an installed capacity of 1.1GW and will produce renewable energy at a cost lower than that of traditional generation methods. It is expected to generate over 4,300 GWh of electricity annually, reducing CO2 emissions by more than 2.2 million tonnes each year. This project supports Egypt’s commitment to the Paris Agreement and its efforts to transition to a low-carbon energy sector.
As a leading partner in Egypt’s Nexus of Water, Food & Energy (NWFE) programme, the EBRD has emerged as a key player in the energy component of this initiative, which was launched at COP27. This wind farm is one of the first projects developed under the NWFE energy pillar. It will contribute to Egypt’s target of 10GW of renewable energy and help decarbonise the country’s fossil fuel-based power sector.
Suez Wind, a special project company, is co-owned by ACWA Power and HAU Energy, the latter of which is a newly established renewable energy platform backed by the EBRD, alongside Hassan Allam Utilities and Meridiam Africa Investments.
Rania A. Al-Mashat, Egypt’s minister of planning, Economic Development and International Cooperation, and the EBRD Governor for Egypt, said, “Egypt is committed to advancing its renewable energy ambitions, aiming to derive 42% of its energy mix from renewable sources by 2030, in line with our nationally determined contributions. Through our partnership with the EBRD, a key development partner within the energy sector of Egypt’s country platform for the NWFE programme, we are mobilising blended finance to attract private-sector investments in renewable energy. So far, funding has been secured for projects with a capacity of 4.7GW, and we are working collaboratively to meet the programme’s targets to reduce Egypt’s fuel consumption and expand clean energy projects.”