Egypt’s 500 MW Gulf of Suez 2 wind farm project achieves financial close

Egypt’s 500 MW Gulf of Suez 2 wind farm project achieves financial close

The Red Sea Wind Energy, the consortium developing the 500-megawatt (MW) Gulf of Suez 2 wind farm project in Ras Ghareb, Egypt, announced that the Independent Power Producer (IPP) project has achieved financial close.

Red Sea Wind Energy S.A.E is owned by a consortium of ENGIE (35 percent), Orascom Construction (25 percent), Toyota Tsusho Corporation (20 percent) and Eurus Energy Holdings Corporation (20 percent). The ground-breaking took place in November 2022.

Consortium member Engie said in a press statement that the plant would be connected to the grid over two phases with full commercial operation planned in the third quarter of 2025.

The statement said consortium will operate and maintain the wind farm under a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC),

Orascom Construction will execute the construction of the civil and electrical works of the wind farm which is expected to comprise of 84 wind turbine stations of 6 MW capacity each.

Non-recourse project financing is provided by the Japan Bank for International Corporation (JBIC) in coordination with Sumitomo Mitsui Banking Corporation, the Norinchukin Bank, and Société Générale S.A. under a Nippon Export and Investment Insurance (NEXI) cover, and the European Bank for Reconstruction and Development (EBRD).

HSBC Bank Egypt