African Development Bank Commits $170 Million to Egypt’s Largest Wind Energy Project

The African Development Bank (AfDB) has approved a $170 million loan to finance the development of the Suez Wind Project, a transformative initiative capable of generating 1.1 GW of power, which is set to become Egypt’s largest wind energy installation. With an estimated total cost of $1.1 billion, this project will enhance Egypt’s renewable energy ambitions and contribute to regional energy security.

The Suez Wind Project has been awarded the prestigious Golden License by Egypt’s Cabinet, designating it as a strategic initiative. This status allows for streamlined approvals and incentives aimed at expediting the project’s completion. The wind farm is crucial to Egypt’s goal of achieving 42% renewable energy in its generation mix by 2030.

“This project underscores Egypt’s leadership in renewable energy and the Bank’s commitment to transformative clean energy developments across Africa,” said Kevin Kariuki, AfDB Vice President for Power, Energy, Climate, and Green Growth. “It drives local economic growth, strengthens regional energy security, and aligns with Egypt’s climate commitments.”

Located along the Gulf of Suez, the project comprises two wind farms, each with a capacity of 550 MW. Under a 25-year take-or-pay Power Purchase Agreement (PPA), the Egyptian Electricity Transmission Company (EETC) will serve as the sole off-taker. The wind farms are expected to generate 4,111 GWh of electricity annually, providing clean energy to over one million households and reducing CO₂ emissions by 1.71 million tons per year.

Wale Shonibare, the AfDB’s Director of Energy Financial Solutions, emphasized the project’s broader significance: “The Suez Wind Project showcases the immense renewable energy potential in Africa and highlights how innovative solutions and partnerships can accelerate the energy transition while fostering sustainable economic development.”

Financing for the project includes contributions from a consortium of Development Finance Institutions (DFIs), commercial banks, and other financial entities, further underscoring global investor confidence in Egypt’s renewable energy sector.

This initiative supports multiple objectives, including the AfDB’s Ten-Year Strategy, its New Deal on Energy for Africa, and its High 5 priority to “Light Up and Power Africa.” It also aligns with Egypt’s climate action commitments under the Paris Agreement, reinforcing the commitment to sustainable and inclusive energy development across the continent.

With construction expected to begin soon, the Suez Wind Project is poised to play a pivotal role in shaping Egypt’s renewable energy landscape, serving as a model for large-scale renewable projects across Africa.