The European Development Partners (EDP) has signed an Umbrella Agreement with the Arab Republic of Egypt to secure finance for a new windfarm in the Gulf of Suez area in Egypt.
The EDP includes the European Union (EU), KfW for German Development Cooperation, the European Investment Bank (EIB), and AgenceFrançaise de Développement (AFD).
Estimated to generate 200MW of renewable electricity, the project is part of the Egyptian long-term energy strategy, which aims to use the country’s renewable energy potential. The Gulf of Suez windfarm will generate 650GWh of emissions-free electricity annually, which is sufficient to cater approximately 370,000 Egyptians.
The project will also help prevent CO² emissions of around 288,000t annually and assist the Egyptian Government’s objective to produce at least 20% of energy out of renewable sources by the year 2022.
The project's budget amounts to €343m. Of this, €267m is planned to be provided by the EDP, while the EU provides a grant of €30m and the Egyptian Government contributes €78m. In addition, the German Development Cooperation, through KfW, will be providing a loan of €72m, the EIB will provide a loan of €115m, and AFD will be offering a soft loan of €50m.
Implemented by Egypt’s New and Renewable Energy Authority (NREA), the project is expected to be commissioned by the end of 2019.