Egypt: Construction of 250 MW European banks-funded wind farm at Ras Gharib underway
A new agreement has been signed between New and Renewable Energy Authority (NREA) and Lekela Power to launch a wind farm with 250 megawatt capacity. The wind farm is set to be constructed at Ras Gharib in the Suez governorate of Egypt.
The Chairperson of the NREA, Mohamed El Khayat said to Daily News Egypt that through an agreement signed at Suez, the company has received the land on which the project shall be situated for 2 percent of the produced energy annually.
The project is a part of government of Egypt’s plan to implement energy projects under the build, own, operate (BOO) system. The project benefits from its location where there are strong winds, allowing the company to sell energy at competitive prices. The Egyptian Electricity Transmission company (EETC) will be purchasing the energy produced from the project. Lekela Power signed an energy purchase agreement with the EETC last month. The financial closure of the project is expected to be finalised by the end of August, Zawya reported.
The project is likely to get more funds from three European banking institutions. The International Finance Corporation (IFC) offered a loan worth USD 82 million, the European Bank for Reconstruction and Development (EBRD) contributed USD 81 million, and the Overseas Private Investment Corporation (OPIC) added USD 82 million on the funds, Construction Review Online noted.
Source: devdiscourse
