Renewable power generation company Lekela has announced the initialling of a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) and the Minister of Energy to develop a new 250MW windfarm in the Gulf of Suez.
Lekela is a joint venture (JV) company that is 60% owned by growth markets energy investor Actis and 40% by a mainstream renewable power-led consortium that includes investors such as the IFC and the Rockefeller Brothers Fund.
Located approximately 30km North-West of Ras Ghareb, Egypt, the new project is part of the Egyptian Government’s build, own, operate (BOO) framework.
Windpower generated by the project will be divested to the EETC.
Lekela CEO Chris Antonopoulos said: “The initialling of the PPA marks an important step for Lekela and its partners.
“This is part of our long-term strategic plan to deliver renewable energy to Egypt and support the diversification of its generation capacity at a highly competitive price.”
As part of the project, extensive environmental and technical studies have already been carried out on the windfarm site.
Financial closure and construction is expected to take place next year.
Antonopoulos further said: “Our progress in Egypt mirrors our development efforts across the African market.
“Generating clean, renewable and competitively priced power continues to be a priority in many countries across the continent and we are looking forward to further announcements in South Africa, Ghana and Senegal in due course.”