Renewables developer Lekela has signed a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for its 250MW wind farm in the Gulf of Suez, near Ras Ghareb.
Financial close is expected to take place later this year and the $325m project, part of the Egyptian government's 'build, own, operate' scheme, is expected to be operational in 2021.
Once constructed, the project will increase Egypt’s wind capacity by 14%. It will produce more than 1,000GWh a year, powering the equivalent of over 350,000 homes.
A Network Connection Agreement with EETC has been signed. The project will be constructed on a turnkey EPC basis and an announcement on the contractor will be made later.
“Egypt has a target of achieving 20% renewable power in its overall energy mix by 2022. Today’s agreement is a major milestone for delivering a 250MW wind farm to help achieve that goal,” said Chris Antonopoulos, chief executive of Lekela.
“Across Africa we are starting to see the positive impact renewable energy can have on communities and on enterprise. Egypt is a key part of our strategy to develop 1.3GW of clean energy across Africa to drive economic and social prosperity for its communities.”
Egypt has the potential to generate up to 53% of its electricity from renewable sources by 2030, according to a report by the International Renewable Energy Agency (Irena) published late last year.