The European Bank for Reconstruction and Development announced its support for the development and sustainability of the renewable energy sector in Egypt by providing a loan worth US$21.3 million to the Red Sea Wind Energy Company.
The loan aims to finance the development and expansion of the wind power station in the Gulf of Suez region by adding another 150 megawatts to the station, which has a current capacity of 500 megawatts.
This financing comes in addition to a previous loan provided by the European Bank for Reconstruction and Development and the Green Climate Fund in 2023 to the Red Sea Wind Energy Company to finance the construction of the original wind power plant with a capacity of 500 MW.
After this expansion, the total capacity of the station upon completion of the project will reach 650 megawatts, becoming the largest wind energy station in Egypt and the African continent.
This project is expected to contribute to reducing annual carbon emissions in Egypt by 1.3 million tons of carbon dioxide emissions.
The Red Sea Wind Energy Company is an Egyptian joint stock company and is owned by a group of local and international partners, including Engie, Warwascom Construction, Toyota Tsusho, and Euros Energy.
The European Bank for Reconstruction and Development is one of the most important development partners for the energy axis within the “Novi” programme, which aims to integrate water, food and energy, which was announced during the climate conference (COP27).
This station is considered one of the first projects to be developed within the framework of the “Novi” program, and it is a major step towards achieving the goal of producing 10 gigawatts of renewable energy set in the “Novi” program.
The station will also contribute to supporting the Egyptian government’s efforts to achieve its national renewable energy goals.
The loan agreement was signed in the presence of representatives of the European Bank for Reconstruction and Development, Engie, Orascom Construction, and Toyota Tsusho.
For her part, Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, Governor of Egypt at the European Bank for Reconstruction and Development, stressed the constructive partnership with the Bank, as it is the main development partner within the energy axis of the “Novi” program, which has contributed to increasing private sector investments in the energy transition. Renewable financing through soft financing worth more than $2.5 billion so far, in order to implement projects with a capacity of 4.7 gigawatts, to reach our goal of 10 gigawatts by the end of the program, to support the national strategy for changes. Climate Change 2050, Nationally Determined Contributions, and enhancing the country’s goal of reaching 42% renewable energy by 2030.”
In turn, Nandita Parshad, Director of the Sustainable Infrastructure Group at the European Bank for Reconstruction and Development, said: “We are pleased to sign the financing agreement for the expansion of the 150 MW wind farm, which is being built in the Gulf of Suez region.
She continued: Companies with extensive experience from the three continents in which the European Bank for Reconstruction and Development operates are participating in this project, which confirms our partnership and strong commitment to supporting a sustainable economy in Egypt. “The completion of financing for this largest station to date in Egypt and Africa, during COP29, confirms its importance.”
Egypt is one of the founding countries of the European Bank for Reconstruction and Development, where it began operations in 2012. Since then, the bank has invested more than 12.5 billion euros in 187 projects across the country.
The bank’s investments in Egypt include multiple sectors, including the financial sector, agriculture, manufacturing industries, and services, in addition to infrastructure projects in the fields of energy, water, and transportation.
