The European Bank for Reconstruction and Development (EBRD) is set to spearhead the financing and development of a significant renewable energy project in Egypt, marking a notable step in the country’s clean energy transition. The Ras Ghareb wind farm, a 200MW onshore project, will receive a comprehensive financing package totaling $74.1 million (E£3.57 billion) from the EBRD, with additional support from the Green Climate Fund (GCF), the Japan International Cooperation Agency (JICA), and Proparco.
This initiative underscores the EBRD’s commitment to Egypt’s Nexus on Water, Food and Energy (NWFE) initiative, serving as the acting lead institution and coordinating with other international partners. The financing package comprises an EBRD senior loan of up to $60.7 million, a concessional loan of up to $3.38 million from the GCF, and an investment grant of up to $10 million. Construction is anticipated to commence in the coming weeks, with the project expected to contribute significantly to Egypt’s renewable energy goals.
Harry Boyd-Carpenter, Managing Director of the EBRD’s Sustainable Infrastructure Group, expressed enthusiasm for the project, highlighting the power of global cooperation in advancing renewable energy and building a sustainable future. He emphasized the importance of partnerships between visionary companies and committed international partners, citing the Ras Ghareb project as a shining example.
Upon completion, the Ras Ghareb wind farm is poised to play a crucial role in Egypt’s objective of reaching 10GW of renewable energy capacity by 2028. The project is expected to reduce the nation’s annual carbon emissions by 390,000 tonnes, fostering local skills development and job opportunities through a certified internship program. This initiative aims to encourage women’s participation in the energy sector, aligning with broader goals of inclusivity and sustainability.
Mohamed Ismail Mansour, Co-founder and Chairman of Infinity Power, expressed gratitude for the support of finance partners, emphasizing the importance of strong partnerships in delivering Egypt’s clean energy ambitions and accelerating the transition to a more sustainable future across Africa.
This development comes on the heels of Romania’s recent completion of its second renewable energy auction under the contracts for difference (CfD) scheme, also supported by the EBRD. The CfD scheme promotes investment by offering long-term revenue stability to developers and aiding the integration of renewables into the market.
The Ras Ghareb wind farm project is expected to shape the development of the renewable energy sector in several ways. Firstly, it demonstrates the effectiveness of international collaboration in financing and executing large-scale renewable energy projects. The involvement of multiple institutions, including the EBRD, GCF, JICA, and Proparco, sets a precedent for future projects, highlighting the benefits of coordinated efforts.
Secondly, the project’s focus on local skills development and job creation, particularly through the certified internship program, underscores the importance of community engagement and capacity building in renewable energy initiatives. This approach not only enhances the project’s sustainability but also contributes to the broader economic development of the region.
Lastly, the Ras Ghareb wind farm aligns with Egypt’s ambitious renewable energy targets, showcasing the country’s commitment to reducing carbon emissions and transitioning to cleaner energy sources. The success of this project could inspire similar initiatives in other African countries, accelerating the continent’s renewable energy transition.
As the construction of the Ras Ghareb wind farm commences, the project is poised to become a model for renewable energy development, demonstrating the power of international partnerships, community engagement, and sustainable practices in driving the energy sector forward.