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EIB to back 200MW Gulf of Suez wind farm

The European Investment Bank (EIB) has committed to a €115m ($123.6m) loan for a 200MW Gulf of Suez onshore wind farm in Egypt.

“The EIB is proud to finance the Gulf of Suez wind farm which contributes to environmental sustainability and climate change mitigation. The project is in line with the Bank’s objective to provide more finance to renewable energy projects,” said EIB’s Heinz Olbers.

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The wind farm will also be financed by German state-owned investment bank KfW, which will provide a further €72m loan, Agence Française de Développement with €50m and the European Commission, which is supplying a grant of €30m for the project.

The Gulf of Suez project is sited 400km southeast of Cairo. Up to 100 turbines will be installed, EIB said. However, no details have been revealed about the manufacturer of the machines and no timescale for the development has been announced.

Last year, a number of major renewables companies signed deals to invest in Egypt, including China's TBEA SunOasis, Saudi Arabia's ACWA Power, and Germany’s Siemens, which signed a deal to build €8bn ($9bn) worth of energy infrastructure in the country. Siemens also plans to open a blade plant in Morocco this year after winning a concession in the country.

Egypt hopes to generate 20% of its power from renewable sources by 2022, massively increasing the role of wind, solar and hydropower, as the government is attempting to modernise its power system, which is currently dominated by fossil fuel generation.

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