The European Bank for Reconstruction and Development (EBRD) continues its support for Egypt’s green transition by issuing a senior secured loan of up to US$ 100 million to Red Sea Wind Energy. The loan will fund the development, construction and operation of a new 500 MW onshore wind farm located in the Gulf of Suez area.

The loan consists of a portion of up to US$ 50 million from the EBRD and a portion of up to US$ 50 million from the Green Climate Fund (GCF) in favour of Red Sea Wind Energy. The loan is co-financed by the Japan Bank for International Cooperation and private commercial banks insured by Nippon Export and Investment Insurance, and is the Bank’s first project to be co-financed by those Japanese institutions.

Red Sea Wind Energy is a joint-stock company incorporated in Egypt and owned by a consortium of sponsors, including Engie, Orascom Construction, Toyota Tsusho Corporation and Eurus Energy.

This will be Egypt’s third private wind farm and it is expected to be the largest in Africa. It will help reduce around one million tonnes of CO2 emissions per year, the equivalent of taking about 217,000 cars off the road. The energy generated will be sold to the Egyptian Electricity Transmission Company (EETC) over a period of 25 years.

This wind farm is one of the first to be built under the Energy Pillar of Egypt’s Country Platform for NWFE programme, which was launched by the Government of Egypt at COP27 with many institutions, including the EBRD as the lead development partner for the Energy Pillar. It is the first step in deploying an additional 10 GW of renewable energy capacity between 2023 and 2028. It will also help the country achieve its renewable energy target.