Arab Finance: The European Bank for Reconstruction and Development announced the provision of concessional development financing worth $21.3 million to the Red Sea Wind Energy Company. With the aim of financing the expansion of the wind power station located in the Gulf of Suez region, It is considered one of the largest existing projects in the renewable energy sector in Egypt, as part of its efforts to promote the transition towards renewable energy and achieve sustainable development in Egypt, through the projects of the national platform of the “Novi” program.
The current project includes expanding the existing wind power station, which has a capacity of 500 megawatts, by adding another 150 megawatts, bringing the total capacity of the station to 650 megawatts upon completion of the project. It is expected that this expanded station will become the largest wind energy station in both Egypt and the African continent.
This project is expected to contribute to achieving significant progress in Egypt's efforts to reduce carbon emissions, as the project is estimated to reduce about 1.3 million tons of carbon dioxide emissions annually. This significant reduction represents a tangible step towards achieving national goals related to combating climate change and promoting the use of clean energy sources.
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 the main development partner within the energy axis of the “Novi” program, which contributed to increasing private sector investments for the transformation. Renewable energy, 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 2050, Nationally Determined Contributions, and enhancing the country’s goal of reaching 42% renewable energy by 2030.
This new financing comes in addition to previous financing provided by the European Bank for Reconstruction and Development and the Green Climate Fund in 2023 to support the construction of the original 500 MW wind power plant. This ongoing cooperation highlights the Bank’s commitment to supporting Egypt in implementing its ambitious renewable energy projects and promoting sustainable development.
The project is managed by the Red Sea Wind Energy Company, an Egyptian joint stock company whose ownership structure includes a group of prominent local and international partners. The list of shareholders includes the French companies “Engie”, the Egyptian “Orascom Construction”, the Japanese “Toyota Tsusho”, and the Japanese “Euros Energy”. This cooperation between institutions from several continents reflects the importance of the project as a platform for international integration in the fields of sustainable energy.
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