Leading Middle Eastern renewable energy firm AMEA Power, headquartered in Dubai, has completed the financial close required to deliver 500 MW of wind and 500 MW of solar projects, totaling $1.1 billion in investment in Egypt.
The agreement increases the company’s clean energy portfolio in the nation to 2 GW.
The 500 MW solar PV facility will be built, owned, and run by AMEA Power, and it will be situated in Egypt’s Aswan governorate. The International Finance Corporation (IFC), a unit of the World Bank Group, the Dutch Entrepreneurial Development Bank (FMO), and the Japan International Cooperation Agency (JICA) are all providing funding for the initiative.
The 500 MW wind farm, located in the Red Sea Governorate, is being developed in partnership with Sumitomo Corporation, which will own 40% equity in the project. Financing is being provided by a consortium of banks, including Japan Bank for International Cooperation (JBIC) and IFC, together with Standard Chartered Bank, Commercial International Bank, Sumitomo Mitsui Banking Corporation, and Sumitomo Mitsui Trust Bank, participating as co-lenders under Nippon Export and Investment Insurance (NEXI) cover.
Both projects have already secured Power Purchase Agreements (PPAs) with the Egyptian Electricity Transmission Company (EETC) and Usufruct Agreements, with the New and Renewable Energy Authority (NREA) having already completed its feasibility studies.
Hussain Al Nowais, Chairman of AMEA Power, said: “These landmark projects reflect the long-term commitment, ambition, and growth of AMEA Power.” The company is leading the development of renewable energy across Africa, which, through its global and regional partnerships, will deliver clean energy to millions of people around the continent.
“We are proud to reach this significant milestone and to be supporting Egypt in its energy transition journey and drive to accelerate sustainable development. “Today’s achievement would not have been possible without the hard work of AMEA Power’s world-class team, the support of our project partners, lenders, advisors, and the cooperation of the Egyptian government.”
The projects will underpin the renewable energy ambitions of Egypt, along with supporting economic and social development within the region. The Egyptian government is working towards increasing the supply of electricity generated from renewable sources to 42% by 2035.
“These projects highlight the private sector’s essential role in helping to deliver clean, affordable power, especially at a time of growing challenges from climate change and pressures on the environment,” said Cheick-Oumar Sylla, IFC Regional Director for North Africa and Horn of Africa. “Egypt has ambitious renewable energy goals, and we are proud to support AMEA’s expansion into Africa as well as its partnership with Egypt to accelerate the country’s renewable energy transition.”
Alongside the United Nations Climate Change Conference (COP27) in Sharm El-Sheikh, AMEA Power and the Egyptian Government also recently inked a framework agreement to develop a sizable green hydrogen project that will act as a feedstock for the creation of green ammonia. 800,000 tons of green ammonia can be produced annually for export at the 1GW plant once it is finished.
In order to show its dedication to the global energy transition over the long term, AMEA Power is rapidly increasing its investments in green hydrogen, energy storage, wind, and solar energy. With projects in 15 nations, the company’s clean energy pipeline amounts to almost 6 GW.
