The Red Sea Wind Energy Consortium – which is majority owned by French multinational utility group Engie, has announced the financial close on the new 500 MW Gulf of Suez Wind Farm near Ras Ghareb in Egypt.
The consortium has an agreement to construct, operate and maintain the wind farm under a 25-year power purchase agreement (PPA) with the national utility, the Egyptian Electricity Transmission Company (EETC).
The wind farm will be connected to the grid over two phases with full commercial operation scheduled for Q3 2025. EETC’s obligations under the PPA are backed by Egypt’s Ministry of Finance.
Engie with a majority ownership of the Red Sea Wind Energy Consortium has a 35% stake, while Egypt’s Orascom Construction has a 25% stake, Toyota Tsusho Corporation with a 20% stake, and Eurus Energy Holdings Corporation with a 20% stake respectively.
Orascom Construction will execute the construction of the civil and electrical works of the wind farm.
Once completed, the 500 MW Gulf of Suez Wind Farm will be capable of delivering clean power to more than 800,000 Egyptian homes. The project will also help accelerate Egypt’s transition to renewable power generation and will reduce CO2 emissions by approximately 1 million tonnes annually.
This project marks the first co-financing between JBIC and the EBRD since the signing of an MOU in October 2022 to fortify cooperation between the two organisations, and the first joint project between NEXI and the EBRD since the signing of an MOU in October 2020.
Orascom Construction Executive Director (Concessions) Khaled El Degwy said: “This project marks the joint efforts of our consortium, a strong group of international financial institutions, export agencies and commercial banks, and EETC and NREA to deliver an important project that helps accelerate the transformation of the renewable energy sector in Egypt.”
Toyota Tsusho COO (Machinery, Energy & Project Division) Toshiyuki Ishikuro expressed delight at continuing with this historic 500 MW Wind Project with its partners and the Egyptian Government.
“Egypt is a very important partner of ours with 90 years of business history and we remain committed to achieving Carbon Neutrality in Egypt,” he added.