AMEA Power Ltd., a UAE-based renewable energy firm, announced on Monday that it will build two large clean energy projects in Egypt, paving the way for construction to commence.
The two projects, the 500 MW Abydos solar plant in the Aswan governorate, 600 kilometers south of Cairo, and the 500 MW Amunet wind farm in the Red Sea governorate, 318 kilometers south of Cairo, will be built, owned, and operated by the fully owned subsidiaries of United Arab Emirates-based AMEA Power—Abydos Solar Power Co. and Amunet Wind Power Co.
Although AMEA Power could not confirm when the projects would break ground, the company expects to bring the solar photovoltaic (PV) plant online in the first quarter of 2025 and the wind farm in the second quarter of 2025.
Completion of these two projects would increase AMEA Power’s clean energy projects in Egypt to 2 GW. The projects are driven partly by the declining costs of renewable power technologies.
“These landmark projects reflect the long-term commitment, ambition, and growth of AMEA Power,” says Hussain Al Nowais, chairman of AMEA Power.
IFC’s regional director for North Africa and the Horn of Africa, Cheick-Oumar Sylla, says the two renewable 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.”
“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,” adds Sylla.
Financing for the Abydos PV plant has been provided by the World Bank Group’s International Finance Corporation (IFC), the Dutch Entrepreneurial Development Bank, and the Japan International Cooperation Agency (JICA).
The wind farm project developer is in a partnership with Japan-based investment giant Sumitomo Corp. Funding has been provided by the Japan Bank for International Cooperation, the IFC, Standard Chartered Bank, and Commercial International Bank.
Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank are participating in the project as co-lenders under the Nippon Export and Investment Insurance.
The financing covers the construction of transmission infrastructure, technical assistance to support Egypt’s renewable energy expansion program, as well as the development and construction of the solar photovoltaic and wind plants.
In December 2019, Egypt Electricity Transmission Co. signed power purchase agreements with the two AMEA Power subsidiaries, while the nation’s New & Renewable Energy Authority finalized agreements for the development of the two clean energy facilities.
Egypt now has 3.7 GW of installed renewable energy capacity, including 2.8 GW of hydropower and roughly 0.9 GW of solar and wind power, which has supported an estimated 6,000 jobs to date.
Egypt had set a target of 20% renewable energy in its electrical mix by 2022 and 42% by 2035.
