Cairo – Red Sea Wind Energy, an Egyptian private company, has signed a USD 680 million agreement with banks and international financing organizations for establishing a mega wind farm in Egypt’s Gulf of Suez. This was announced as one of the biggest wind energy projects in Africa.
The signing ceremony was attended by Egypt’s prime minister Mostafa Madbouly, Electricity & Renewable Energy minister Mohamed Shaker, International Cooperation minister Rania Al-Mashat, and Oka Hiroshi, ambassador of Japan to.
The agreement was signed by representatives of the Red Sea Wind Energy chairperson Khaled El-Degwi, chief financial officer Yuji Hashimoto, and executive director Hans Bruns. From the financing side, Kenichiro Kitamura, regional director of the Japan Bank for International Cooperation (JBIC), and Heike Harmagart, representative from the European Bank for Reconstruction and Development (EBRD), signed the agreement.
The minister of Electricity and Renewable Energy said this project is one of the largest wind energy projects in Egypt and Africa. According to him, the role of the Red Sea Wind Energy Company is to operate and maintain the wind farm under a 25-year purchase agreement, which it signed with the Egyptian Electricity Transmission Company, affiliated with Egypt’s government.
He explained the station is scheduled to be connected to the national grid in two phases, with full commercial operation planned during the third quarter of 2025. Its implementation enhances Egypt’s chances of exporting electricity to Europe, Asia and Africa by expanding electrical interconnection projects with neighboring countries.
He explained that the company’s ownership structure is distributed among a consortium of companies, which includes: ENGIE with a 35% stake, Orascom Construction, which holds 25%, Toyota Tsusho Corporation with 20%, and Eurus Energy Holdings Corporation with 20%. This is expected to be the largest wind farm in Africa and will help reduce carbon dioxide emissions by about one million tons annually, added El Degwi.
Harmgart said the the European Bank for Reconstruction and Development is working to support the green transition process in Egypt, as it announced today the issuance of development financing amounting to USD 100 million for the Red Sea Wind Energy Company to finance the development, construction and operation of a wind farm. The financing consists of up to USD 50 million from the European Bank for Reconstruction and Development and up to USD 50 million from the Green Climate Fund.
Translated by Guilherme Miranda
