- The European Bank for Reconstruction and Development (EBRD) is providing USD 50 million loan to the Red Sea Wind Energy Company for the 500 MW Gulf of Suez II wind farm in Egypt.
- The loan will be used for the construction, commissioning, and operation of the wind power project which consists of 173 wind turbines.
- The project is located 40 km northwest of the city of Ras Ghareb.
- The project also includes the construction of a 33/220 kV substation.
The 500 MW Gulf of Suez II wind farm has now reached financial close and construction is expected to begin in Q4 2020. Commercial operation is expected 29 months after construction commencement.
The project will contribute to increasing energy security through reliance on an indigenous, inexhaustible, and mostly import-independent energy resource. The expected electricity generation from the Gulf of Suez II wind power project will serve the annual electricity needs of more than 800,000 local households.
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Furthermore, the project will reduce greenhouse gas emissions as well as air pollutant emissions through the reduction of overreliance on conventional ways of producing electricity such as liquid fuels. The project is likely to displace more than 1 million metric tons of CO2 per year.
More importantly, the project will contribute to the government’s ambition to produce 20% of the country’s electricity from clean sources by 2022 and 42% by 2035.
Author: Bryan Groenendaal
