Suryaa International Desk: Egypt has secured $436 million in debt funding for the expansion of its green energy sector. The renewable energy firm Alcazar Energy Partners raised these funds to support the construction of two wind power plants located on the Red Sea coast.
The total cost of the projects is estimated at $626 million. The funding was provided in equal shares by the European Bank for Reconstruction and Development, the European Investment Bank, and the German development finance institution DEG. The facilities, named Niyat and Rashah, are to be located in the Ras Ghareb area of the Gulf of Suez and will have a combined production capacity of 500 megawatts.
Siemens Gamesa will supply the wind turbines for the projects, with a target for full operational status by the end of 2028. A 25-year power purchase agreement has been signed with the Egyptian Electricity Transmission Company. Project sources stated that the cost of green electricity produced will be approximately three cents per unit, which is described as more economical than natural gas-based power.
The Egyptian government is working to reduce reliance on fossil fuels and natural gas, aiming to generate 45 percent of the country's electricity from renewable sources. The Red Sea coast is attracting international investment due to its geographical suitability for wind energy. Experts anticipate that this funding will contribute to reducing carbon emissions and enhancing the stability of the national power grid.
These projects are expected to provide employment opportunities and support the industrial sector through the supply of electricity. This development is considered a step toward Egypt's goal of becoming a hub for green hydrogen and clean energy exports in the West Asia and North Africa region. Preparations are underway to accelerate civil infrastructure and electrical grid connection works.
