The New and Renewable Energy Authority (Egypt) has signed an agreement with a Vestas-led consortium to develop a 250 MW onshore wind project in the Gulf of Suez. The plant, which requires a €228m (US$271m) investment, will be financed within the framework of an umbrella agreement between the Egyptian government and a group of European lenders, which includes the European Commission and the European Investment Bank, as well as the French Development Agency (AFD) and Germany’s KfW. The project is expected to be commissioned in 2023.
Earlier in August 2020, the European Bank for Reconstruction and Development reviewed a plan to lend US$50m to fund the construction of another 500 MW wind power project in the Gulf of Suez, approximately 40 km from Ras Ghareb in Egypt.
Egypt aims to reach 20% of renewable power generation by 2022, and 42% by 2035. As of August 2020, wind accounted for 2% of Egypt’s installed capacity, with 1.4 GW. More than 800 MW are currently under construction, and 5.8 GW under development.