AfDB Approves $170M Loan for Egypt’s Suez Wind Energy Project

The project is being funded through contributions from the AfDB and a consortium of Development Finance Institutions (DFIs), banks, and financial institutions, signaling robust international support.

The African Development Bank (AfDB) has greenlit a $170 million loan to support the development of Egypt’s ambitious 1.1 GW Suez Wind Project, marking the country’s largest wind energy initiative to date. With a total project cost of $1.1 billion, this transformative renewable energy venture will position Egypt as a regional leader in clean energy development. Key Financing and Project Details:

The project is being funded through contributions from the AfDB and a consortium of Development Finance Institutions (DFIs), banks, and financial institutions, signaling robust international support.

The initiative was granted the Golden License by Egypt’s Cabinet, recognizing it as a strategic undertaking and streamlining its approval process. This special license underscores the government’s commitment to achieving 42% renewable energy in its energy mix by 2030.

Features of the Suez Wind Project:

Capacity: Two wind farms of 550 MW each, located along the Gulf of Suez.

Energy Generation: Producing 4,111 GWh annually, sufficient to power over one million households.

Environmental Impact: Cutting annual CO₂ emissions by 1.71 million tons, bolstering Egypt’s climate commitments under the Paris Agreement.

Economic Contribution: Driving local job creation, supporting infrastructure development, and enhancing regional energy security.

Contractual Agreement: The Egyptian Electricity Transmission Company (EETC) will purchase the electricity under a 25-year take-or-pay Power Purchase Agreement (PPA).

Leadership and Vision for Renewable Energy

Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at AfDB, highlighted the project’s significance:

"The Suez Wind Project is a landmark development that underscores Egypt’s leadership in renewable energy and the Bank’s steadfast commitment to transformative, clean energy projects across the continent."

Wale Shonibare, Director of Energy Financial Solutions, Policy, and Regulations at AfDB, added:

"This initiative exemplifies the scale of renewable energy potential across Africa and demonstrates how strong partnerships can advance the energy transition and foster sustainable economic development."

Alignment with Continental and Global Goals

The project aligns with:

AfDB’s Ten-Year Strategy and the New Deal on Energy for Africa, focus on expanding energy access across the continent.

The Bank’s High 5 objective to "Light Up and Power Africa," promoting sustainable energy development.

Egypt’s national goals to achieve 42% renewable energy in its energy generation mix by 2030, reducing dependency on fossil fuels.

Broader Impacts and Long-Term Benefits

Beyond reducing emissions and expanding access to renewable energy, the project will:

Foster technological innovation in wind energy development.

Bolster economic growth through increased energy security and reliability.

Position Egypt as a hub for renewable energy investments in Africa.

The 1.1 GW Suez Wind Project sets a new benchmark for large-scale renewable energy ventures in Africa, showcasing the transformative potential of clean energy. With the African Development Bank’s strategic backing, this initiative not only strengthens Egypt’s energy landscape but also reaffirms the continent’s commitment to sustainable and inclusive growth.