Dr. Rania Al-Mashat: $275 Million in Joint Financing from International Banks for the Private Sector to Launch Africa's Largest Wind Power Plant with a Capacity of 1.1 GW

H.E. Al-Mashat: The structural reforms implemented by the state have enhanced private investments in the renewable energy sector.

 

We value the efforts of the European Bank in mobilizing innovative financing for both local and foreign private sector investments.

 

Empowering the private sector across various industries is a key part of the ministry's vision to achieve economic development.

 

The new plant will reduce carbon dioxide emissions by approximately 2.2 million tons annually.

 

The European Bank for Reconstruction and Development (EBRD) has announced its approval to mobilize a joint financing package worth $275 million to support a consortium of private companies in establishing Africa's largest wind power plant with a capacity of 1.1 gigawatts. This initiative is part of the country’s efforts to promote clean energy through the energy component of the "NWFE" program.

 

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, and Governor of Egypt at the EBRD, stated: "Egypt is committed to advancing its renewable energy goals, aiming to reach 42% by 2030, in line with its Nationally Determined Contributions (NDCs). Through our partnership with the European Bank for Reconstruction and Development as a key development partner in the energy pillar of the 'NWFE' program, blended financing is being mobilized to attract private sector investments in renewable energy in Egypt. To date, financing has been secured for projects with a total capacity of 4.7 gigawatts, and efforts continue to achieve the program's objectives of reducing Egypt’s fuel consumption and expanding clean energy projects."

 

H.E. Minister Al-Mashat emphasized that the structural reforms carried out by the government have strengthened private sector investments in renewable energy and that empowering the private sector in various sectors is a key part of the ministry's vision to drive economic development. H.E. also commended the European Bank's efforts in mobilizing innovative financing for both local and foreign private sector participants.

 

The European Bank is providing $200 million in financing, while the Arab Bank is contributing $60 million, and Standard Chartered Bank is offering $15 million. The project is also supported by the African Development Bank (AfDB), the British International Investment (BII), Deutsche Investitions und Entwicklungsgesellschaft (DEG), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP).

 

The wind farm in the Gulf of Suez is set to have a capacity of 1.1 GW and will provide clean, renewable, locally sourced energy at a lower cost than traditional energy. The new power plant is expected to generate more than 4,300 GWh of electricity annually and will help reduce annual carbon dioxide emissions by more than 2.2 million tons, supporting the country’s efforts to develop an energy sector that aligns with its commitments under the Paris Agreement.

 

The project is being implemented by Suez Wind, a special purpose vehicle jointly owned by ACWA Power and HAU Energy, with investments from the EBRD, alongside Hassan Allam Utilities and Meridiam Africa Investments.