The European Bank for Reconstruction and Development (EBRD) is evaluating a $200 million senior debt package to support the development of a substantial wind energy project in Egypt’s Gulf of Suez.
The project, led by Suez Wind Energy, a special purpose vehicle (SPV) established to build and operate the wind farm, aims to add 1.1 gigawatts (GW) of renewable capacity to Egypt’s power sector, to advance the country’s green energy goals.
This project aligns with Egypt’s targets under the Nexus for Water, Food, and Energy (NWFE) framework, specifically supporting the government’s objective to reach 10 GW of renewable energy capacity.
Located in the Gulf of Suez, the wind farm is strategically positioned to harness the region’s high wind speeds and deliver clean power at a competitive tariff.
Upon completion, the wind farm is projected to drastically reduce environmental impacts traditionally associated with fossil fuel-based energy sources. It is estimated to prevent approximately 2.2 million tonnes of carbon dioxide emissions annually, contributing substantially to Egypt’s national climate commitments.
This aligns with the broader climate goals outlined by the Egyptian government, which has prioritized reducing CO2 emissions, minimizing pollutants, and decreasing water consumption across the power sector.
Suez Wind Energy, incorporated in Egypt, will oversee the project’s development, supported by a consortium that includes ACWA Power, a major player in power generation and renewable hydrogen production.
The consortium also involves HAU Energy, a renewable energy investment platform co-owned by Meridiam (45%), Hassan Allam Utilities (30%), and the EBRD itself (25%).
EBRD’s financing structure is designed to provide flexible terms typically unavailable from commercial lenders, including an extended grace period and longer repayment terms.
Such conditions are essential for mega infrastructure projects of this nature in order to attract and retain investor confidence by managing regulatory, political, and project-specific risks.
EBRD has had extensive experience with similar renewable projects in Egypt and beyond by offering strategic support beyond financial contributions, which further bolsters the project’s credibility. EBRD has an ongoing commitment to promoting green energy initiatives and supporting Egypt’s transition to a low-carbon economy.
