The solar and wind projects, which have completed their feasibility studies, are underpinned by power purchase agreements with EETC and usufruct agreements with NREA
UAE-based renewable energy developer AMEA Power has achieved financial close to develop 1GW of wind and solar energy projects in Egypt with an investment of $1.1bn.
AMEA Power will develop, own, and operate a solar photovoltaic (PV) plant and a wind farm, each with a capacity of 500MW. The projects are said to expand its clean energy portfolio in Egypt to 2GW.
To be located in the Aswan governorate, the solar PV plant is being financed by World Bank’s International Finance Corporation (IFC), Dutch Entrepreneurial Development Bank (FMO), and the Japan International Cooperation Agency (JICA).
The wind farm, which will be located in the Red Sea Governorate, is being developed in collaboration with Sumitomo. The latter will own a 40% stake in the Egyptian wind farm.
A consortium of banks that include Japan Bank for International Cooperation (JBIC) and IFC will finance the project.
Commercial International Bank, Standard Chartered Bank, Sumitomo Mitsui Trust Bank, and Sumitomo Mitsui Banking will participate in the wind project as co-lenders under Nippon Export and Investment Insurance (NEXI) cover.
IFC North Africa and Horn of Africa regional director Cheick-Oumar Sylla said: “These projects highlight the private sector’s essential role helping to deliver clean, affordable power, especially at a time of growing challenges from climate change and pressures on the environment.
“Egypt has ambitious renewable energy goals and we are proud to support AMEA’s expansion into Africa as well as its partnership with Egypt to accelerate the country’s renewable energy transition.”
The solar and wind projects have completed their feasibility studies. Both are underpinned by power purchase agreements (PPAs) with the Egyptian Electricity Transmission Company (EETC) and usufruct agreements with the New and Renewable Energy Authority (NREA).
The solar and wind projects are expected to contribute to the Egyptian government’s efforts to increase the supply of electricity generated from renewable sources to 42% by 2035.
AMEA Power chairman Hussain Al Nowais said: “These landmark projects reflect the long-term commitment, ambition and growth of AMEA Power.
“The Company is leading the development of renewable energy across Africa, which through its global and regional partnerships, will deliver clean energy to millions of people around the continent.”