Egypt is set to start raising funds for an ambitious wind energy project that will result in setting up of 2 GW of operational capacity.
The New and Renewable Energy Authority (NREA) has announced that it is at the final stage of negotiations to raise €180 million for a large-scale wind energy program. The project will have a final installed capacity of 2 GW and will be set up by German company Siemens.
The first phase of this program will cover 180 MW capacity and is expected to require a total investment of €2 billion. The 2 GW wind energy capacity of the entire program shall be distributed across twelve wind projects. Siemens is expected to commission the entire capacity by 2022, supplying around 600 turbines, and investing €100 million to develop a manufacturing facility to product equipment for turbines worth 340 MW capacity every year.
The NREA is in talks with several financial institutions and banks including the National Bank of Egypt (NBE), the Commercial International Bank (CIB), Banque Misr, Audi, Emirates NBD, International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), the German Development Bank (KfW), and the African Development Bank (AfDB).
The European Bank for Reconstruction and Development has allocated several million dollars for the development of renewable energy projects. The French Development Agency Group also announced that it would provide €60 million for the development of renewable energy projects, having signed an agreement with Egypt’s Commercial International Bank for this purpose.
Egypt plans to add 2 GW wind energy capacity by 2022; this part of the 4.3 GW renewable energy capacity addition by the same year.