The European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and the Overseas Private Investment Corporation (OPIC), are jointly investing $252 million (~₹17.96 billion) for a new 250 MW wind project in the Gulf of Suez located in the African continent.
The energy generated by the project is expected to reduce carbon dioxide emissions by 550,000 tons per year.
This will be the second wind farm in Egypt and will be privately owned. The project will be constructed and operated by Lekela Egypt Wind Power BOO. The company is owned by Lekela Power BV which is an independent power producer (IPP) established by Actis Energy Fund III and Mainstream Renewable Power. Lekela Power BV develops onshore wind energy projects in Africa.
Egypt is undergoing an upsurge in the energy sector. Just recently, around €19 million (~₹ 1.51 billion) was invested by the National Renewable Energy Authority (NREA), Egypt, for developing solar projects. Additionally, €150 million (~₹11.95 billion) has been assigned to upcoming projects in the solar arena. These transformations in the energy sector contribute hugely to Egypt’s economic transition.
The wind farm in the Gulf of Suez will generate clean electricity at an unsubscribed tariff. The tariff will be nominal and less than the cost of conventional power generated from fossil fuel-based sources. The Gulf of Suez, being abundant in wind resources, is an ideal location for this project. The EBRD has worked with various establishments to create an economically viable ecosystem in the country by creating a supporting policy and tariff structure in the market.
In recent months, the association, including EDF Renewables and Masdar accomplished the financing of the Dumat Al Jandal utility-scale wind project in Saudi Arabia.
Earlier, the government of Egypt began the process of finalizing regulations for the production and sale of electricity from new private renewable energy projects directly to consumers by September 2019.