The African Development Bank’s Board of Directors has approved a USD 170 million loan to advance the development of Egypt’s largest wind energy project, the 1.1 GW Suez Wind Project.
The total project cost is estimated at USD 1.1 billion. The bank’s financing is in addition to financing expected from a consortium of Development Finance Institutions (DFIs), banks, and financial institutions.
The project has been awarded the Golden License by the Cabinet of Egypt, recognizing it as a strategic initiative for the country. This license provides a set of incentives, including streamlined approvals, to accelerate the project’s implementation and its contribution to Egypt’s renewable energy goals.
Kevin Kariuki, vice president for Power, Energy, Climate, and Green Growth at the AfDB, said, “The Suez Wind Project is a landmark development that underscores Egypt’s leadership in renewable energy and the bank’s steadfast commitment to supporting transformative, clean energy projects across the continent. This project drives local economic growth and strengthens regional energy security.”
Wale Shonibare, the bank’s director of Energy Financial Solutions, Policy, and Regulations, added, “As the largest wind energy project in Egypt, this initiative exemplifies the scale of renewable energy potential across Africa. It demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development.”
The project involves the design, construction, operation, and maintenance of a greenfield wind farm divided into two sites, each with a capacity of 550 MW, located along the Gulf of Suez. The Egyptian Electricity Transmission Company (EETC) will be the sole off-taker under a 25-year take-or-pay Power Purchase Agreement (PPA).
The wind farm is expected to generate 4,111 GWh annually, supplying clean, reliable, and affordable energy to over one million households. It will reduce annual CO₂ emissions by approximately 1.71 million tons, contributing significantly to Egypt’s climate commitments under the Paris Agreement.
The Suez Wind Project aligns with the African Development Bank’s Ten-Year Strategy, the New Deal on Energy for Africa, and its High 5 goal to “Light Up and Power Africa.” It strengthens Egypt’s commitment to reaching 42% renewable energy in its generation mix by 2030 while advancing the AfDB’s mission to drive sustainable, inclusive, and resilient energy development across Africa.
