The project will produce more than 1000GWh a year, powering the equivalent of over 350,000 homes in Egypt.
Lekela, the renewable power company that delivers utility-scale projects across Africa, has signed a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for its 250MW wind farm project in the Gulf of Suez, near Ras Ghareb.
Located 30 kilometres north-west of Ras Ghareb, the project is part of the Government’s Build, Own, Operate (BOO) scheme. Once constructed, it will increase Egypt’s wind energy capacity by 14%. The project will produce more than 1000GWh a year, powering the equivalent of over 350,000 homes in Egypt. The wind farm will join Lekela’s other projects in South Africa, Senegal, and Ghana that form its current 1,300MW portfolio, making it one of the leading Pan-African renewable power players.
The total investment for the project is estimated at $ 325m and leading Development Finance Institutions have been mandated to provide financing. The Network Connection Agreement with EETC has been signed. The project will be constructed on a turnkey EPC basis and an announcement regarding the EPC contractor will be made at a later date.
Chris Antonopoulos, CEO Lekela said, “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. Across Africa, we are starting to see the positive impact renewable energy can have on communities and on the enterprise. Egypt is a key part of our strategy to develop 1,300MW of clean energy across Africa which will drive economic and social prosperity for its communities.”
Financial close is expected to take place later this year, and the project is expected to be operational in 2021.