Egypt's 500 MW Wind Power Project Closes US$436 Million Financing

en.Wedoany.com Reported - On November 9, UAE energy investment firm Alcazar Energy Partners reached financial close on the Niat and Rasgha wind power projects in Egypt, securing US$436 million in debt financing. The two wind farms are located in the Ras Ghareb area of Egypt's Red Sea Governorate, each with a planned installed capacity of 250 MW, totaling 500 MW, with a total investment of US$626 million. The project financing was provided by three European development finance institutions, and following financial close, engineering execution is now formally underway.

This round of debt financing was jointly provided by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a subsidiary of KfW. Each of the three institutions assumed approximately one-third of the financing share. The EBRD provided loans totaling up to US$145 million, of which the Niat project received up to US$75 million and the Rasgha project received up to US$70 million. The financing package also received support from the European Union's European Fund for Sustainable Development Plus (EFSD+) guarantee mechanism.

The project developer has issued a notice to proceed to Siemens Gamesa Renewable Energy. Siemens Gamesa is responsible for the supply of wind turbine generators and subsequent operation and maintenance services, while Egypt's Orascom Construction is undertaking the associated civil and electrical works for the wind farms. Alcazar Energy Partners is responsible for project development and financing arrangements, and holds interests in the project companies of both wind farms through its investment funds.

Both wind farms have signed 25-year power purchase agreements with the Egyptian Electricity Transmission Company. Once completed, the electricity generated will be supplied to Egypt's national power system in accordance with the agreements. According to the developer's published plans, both wind farms are expected to enter commercial operation by the end of 2028, with annual generation exceeding 2.3 billion kWh, an expected reduction of approximately 1.1 million tonnes of CO2 equivalent emissions per year, and the creation of approximately 45 direct operational jobs.