AfrElec: AfDB approves $170mn loan to fund Egypt’s Suez Wind Project

The African Development Bank (AfDB) board of directors agreed to extend up to a $170mn loan to Egypt to support its large 1.1-GW Suez Wind Project, the bank said in a statement on December 3. 

The funding aligns with the AfDB’s ten-year strategy, the New Deal on Energy for Africa, and its Light Up and Power Africa initiative.

Egypt aims to achieve 42% renewable energy in its energy mix by 2030. The Suez Wind Project is the country’s largest wind energy initiative divided into two sites with 550-MW capacity each, with a total project cost reaching $1.1bn. It operates under a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Co. (EETC). The government aims that the project will drive local economic growth and enhance regional energy security.

The facility, located along the Gulf of Suez, is expected to generate 4,111 GWh annually, providing clean energy to over 1mn households and cutting annual CO₂ emissions by 1.71mn tonnes.

AfDB vice president Kevin Kariuki described the project as a landmark for clean energy and economic growth in Egypt and Africa, while Wale Shonibare, the bank’s energy director, emphasised the project’s role in showcasing Africa’s renewable energy potential.

The Suez Wind Project is financed by a consortium of development finance institutions (DFIs), banks and other financial institutions.

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