Renewable energy company AMEA Power Ltd. has announced the financial close for the two major clean energy projects in Egypt, making way for construction to begin.
The two projects, the 500MW Abydos solar plant located 600km south of Cairo in Aswan governorate and the 500MW Amunet wind farm 318 km south of Cairo in the Red Sea governorate will be built, owned and operated by the fully owned subsidiaries of the United Arab Emirates-based AMEA Power—Abydos Solar Power Co. and Amunet Wind Power Co.
Although AMEA Power could not confirm when the projects would break ground, the company expects to bring the solar photovoltaic (PV) plant online in the first quarter of 2025 and the wind farm in the second quarter of 2025.
Completion of these two projects would increase AMEA Power’s clean energy projects in Egypt to 2 GW. The projects are driven partly by the declining costs for renewable power technologies.
“These landmark projects reflect the long-term commitment, ambition and growth of AMEA Power,” says Hussain Al Nowais, chairman of AMEA Power.
IFC’s regional director for North Africa and Horn of Africa Cheick-Oumar Sylla says the two renewable projects “highlight the private sector’s essential role helping to deliver clean, affordable power, especially at a time of growing challenges from climate change and pressures on the environment.
“Egypt has ambitious renewable energy goals, and we are proud to support AMEA’s expansion into Africa as well as its partnership with Egypt to accelerate the country’s renewable energy transition,” adds Sylla.
Financing for the Abydos PV plant has been provided by World Bank Group’s International Finance Corp. (IFC), Dutch Entrepreneurial Development Bank, Japan International Corp. Agency (JICA).
The wind farm project developer is a partnership with Japan-based investment giant Sumitomo Corp. Funding has been provided by Japan Bank for International Cooperation, IFC, Standard Chartered Bank and Commercial International Bank.
Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank are participating in the project as co-lenders under the Nippon Export & Investment Insurance.
The financing covers construction of transmission infrastructure, technical assistance to support Egypt’s renewable energy expansion program as well as the development and construction of the solar photovoltaic and wind plants.
In December 2019, Egypt Electricity Transmission Co. signed power purchase agreements with the two AMEA Power subsidiaries while the nation’s New & Renewable Energy Authority finalized agreements for development of the two clean energy facilities.
Currently, Egypt’s renewable energy installed capacity is estimated at 3.7 GW including 2.8 GW of hydropower and around 0.9 GW of solar and wind power providing an estimated 6,000 jobs to date.
Egypt had set renewable energy targets of 20% of its electricity mix by 2022 and 42% by 2035.