Acwa reaches financial close on Gulf of Suez wind project: Saudi renewables giant Acwa Power and Hassan Allam Utilities subsidiary HAU Energy have reached financial close for their Egypt’s 1.1 GW, USD 1.2 bn mega Suez wind farm, according to a press release from last week. Full commercial operations are set to begin in Q2 2027.

More on the funding: The consortium secured a USD 703.6 mn senior debt facility from a group of institutions, including the European Bank for Reconstruction and Development (EBRD), the African Development Bank, the British International Investment Corporation, the German Investment Corporation, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation. EBRD funding was supported by a B loan structure from Standard Chartered and Arab Bank.

ICYMI- The European Bank for Reconstruction and Development approved a USD275 mn syndicated loan for the project last month. The companies were reportedly set to secure close to USD 900 mn in financing by the close of 2024 for the project.

About the project: Egypt granted approval for Acwa and HAU to establish their 1.1 GW wind farm in the Gulf of Suez, a government source told EnterpriseAM in September. The first of the project’s two phases will see the firms establish 550 MW worth of capacity in Ras Shukeir, with the second phase set to see an additional 550 MW installed in Ras Ghareb. Acwa will hold a 70% stake in the project, while HAU to hold the remaining 30%.

There is more lined up for Suez Gulf: UAE’s Amea Power secured an agreement with the government to develop a USD 600 mn, 500 MW wind farm in the Gulf of Suez earlier in December, according to a Cabinet statement. The project will reportedly be completed in 1Q 2026, AsharqBusiness reported last month.

IN OTHER WIND NEWS FROM EGYPT-

Orascom JV commences operations at part of Ras Ghareb farm: The Red Sea Wind Energy (RSWE) — a JV between Orascom Construction (OC), Japan’s Toyota Tsusho Corporation/Eurus Energy Holdings Corporation, and France’s Engie — has commenced commercial operations on 306 MW at its newly expanded 650 MW wind farm in Ras Ghareb, according to a statement (pdf). The kick off of operations is taking place four months ahead of schedule, and the remaining capacity of the farm is expected to be gradually connected to Egypt’s national grid by 3Q 2025.

REMEMBER- RSWE achieved a financial close for Ras Ghareb wind farm in April 2023. Later in August, Egypt’s cabinet approved a bid submitted by the consortium to add 150 MW of capacity, bringing the farm’s capacity to 650 MW. EBRD is also reportedly funding this wind farm, with some USD 21.3 mn in financing.

A plan to increase Gabal El Zeit’s production capacity by 43.5% is in the works: Egypt’s New and Renewable Energy Authority (NREA) has received government approval to build a 252 MW wind power extension of the Gabal El Zeit wind farm, a government source told EnterpriseAM. The energy produced from the project will be fed into the national grid, our source added.

Background: Egypt is planning to sell its stakes in the 580 MW — at least for now — Gabal El Zeit wind farm and the soon-to-be repowered 545 MW Zafarana wind farm to private investors. The possible sale has lined up interest from various local and foreign players, including the Danish shipping giant Maersk, Saudi’s Acwa Power, UAE’s Alcazar, and Infinity Power. In October, the UK-based private equity giant Actis was reportedly said to be in talks with the Cabinet to purchase Gabal El Zeit farm.

News of big-ticket renewables investments in Egypt are set to become more commonplace, as the government works towards its ambitious plan to source 42% of its energy from renewables by 2030. To this aim, there’s a plan to launch renewable projects with a combined capacity of 10 GW and combined investments of USD 10 bn from 2023-2028 under the government’s Nexus for Food, Water, and Energy initiative (NWFE), Planning and International Development Minister Rania Al Mashat said last month.

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