The African Development Bank (AfDB) has approved a loan of up to US$170mn to support the 1.1GW Suez Wind Project in Egypt
The initiative is the largest of its kind in the North African country and represents a total cost of around US$1.1bn. Awarded the Golden License by the Cabinet of Egypt, the project has been recognised as a strategic initiative for the country and has been provided a set of incentives to accelerate its implementation.
“As the largest wind energy project in Egypt, this initiative exemplifies the scale of renewable energy potential across Africa,” said Wale Shonibare, the bank’s director of energy financial solutions, policy, and regulations. “It demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development.”
As per the proposed plans, a greenfield wind farm will be designed, constructed, operated and maintained along the Gulf of Suez. This will be across two sites, each with a 550MW capacity that will, together, generate around 4,111GWh annually to more than one million households. This is expected to reduce CO2 emissions by approximately 1.71mn tons, contributing significantly to Egypt’s climate commitments under the Paris Agreement.
"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,” commented Kevin Kariuki, vice president for power, energy, climate, and green growth at AfDB. “This project not only facilitates the Government of Egypt’s efforts to achieve 42% of renewable energy in its energy mix by 2030 but also drives local economic growth and strengthens regional energy security.”
Egypt wind farm receives US$170mn injection
In addition to support from AfDB, the project is expected to receive further financing from a consortium of development finance institutions (DFIs), banks and financial institutions. (Image source: AfDB)
