AfDB Approves $170 Million for Egypt’s Largest Wind Energy Project

The African Development Bank (AfDB) has approved a $170 million loan to support the development of the 1.1 GW Suez Wind Project, which is currently Egypt’s largest wind energy project.

This project is a key component of Egypt's strategy to become a regional energy hub, with a target of achieving 42% renewable energy by 2030. The project involves the design, construction, operation, and maintenance of a greenfield wind farm across two 550 MW sites along the Gulf of Suez. The farm will produce 4,111 GWh annually, enough to power over one million households while reducing CO2 emissions by 1.71 million tons per year. The Egyptian Electricity Transmission Company (EETC) will be the sole off-taker under a 25-year take-or-pay Power Purchase Agreement (PPA).

The total cost of the project is estimated at $1.1 billion. The Bank’s financing is in addition to funding expected from a consortium composed of the leading and majority stake sponsor, ACWA Power, along with minority stakeholders HAU Energy BV, Oman Investment Authority, and The Sovereign Fund of Egypt.

Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, said: "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. This project not only facilitates the Government of Egypt’s efforts to achieve 42 percent renewable energy in its energy mix by 2030 but also drives local economic growth and strengthens regional energy security.”

The Suez Wind Project aligns with the AfDB's Ten-Year Strategy, its New Deal on Energy for Africa, and its High 5 objective of "Light Up and Power Africa." The project not only contributes to sustainable energy development in Egypt but also serves as a model for large-scale renewable projects across the continent. This funding highlights the Bank's commitment to promoting sustainable, inclusive, and resilient energy development across Africa.