EBRD powers Africa’s largest onshore wind project in Egypt

EGYPT – The European Bank for Reconstruction and Development (EBRD) is championing renewable energy in Egypt by arranging a US$275 million syndicated loan to finance the construction and operation of Africa’s largest onshore wind farm. 

The syndicated loan for Suez Wind includes a US$200mA loan from the EBRD and US$75m B loans from Arab Bank and Standard Chartered. Additional funding comes from prominent institutions, including the African Development Bank (AfDB), British International Investment (BII), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP).

Located in the Gulf of Suez region, the wind farm will boast an installed capacity of 1.1 GW and generate over 4,300 GWh of electricity annually.

This is equivalent to offsetting more than 2.2 million tonnes of CO2 emissions annually, making it a pivotal step towards Egypt’s energy transition.

The wind farm will produce renewable energy at a cost lower than conventional generation methods, contributing significantly to Egypt’s decarbonization goals under the Paris Agreement.

The project is a key initiative under Egypt’s Nexus of Water, Food & Energy (NWFE) programme, unveiled at COP27.

This flagship wind farm aligns with NWFE’s goal of achieving 10 GW of renewable energy capacity, advancing the country’s ambitions to decarbonize its power sector and reduce reliance on fossil fuels.

Suez Wind is being developed by a special project company jointly owned by ACWA Power, a global leader in power generation and water desalination, and HAU Energy, a renewable energy equity platform supported by the EBRD, Hassan Allam Utilities, and Meridiam Africa Investments. 

Egypt’s Minister of Planning, Economic Development, and International Cooperation, Rania A. Al-Mashat, highlighted the country’s commitment to deriving 42% of its energy mix from renewable sources by 2030.

She credited the partnership with the EBRD for mobilizing blended finance and attracting private-sector investment to drive renewable energy projects, which have already secured 4.7 GW of capacity.

Nandita Parshad, Managing Director of the EBRD’s Sustainable Infrastructure Group, lauded Egypt as a trailblazer for large-scale renewables in Africa, noting its leadership in developing the continent’s largest solar farm and now its largest onshore wind farm.

As a founding member of the EBRD, Egypt has benefitted from nearly €13.3 billion (US$13.83bn) in investments across 194 projects since 2012, spanning sectors such as finance, transport, agribusiness, and critical infrastructure.

This transformative wind project cements Egypt’s position as a leader in Africa’s renewable energy landscape.

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