Wind energy market in Egypt has received a major boost with some of the leading names in the world coming together to implement at a large-scale wind energy project.
The Ministry of Electricity in Egypt has announced that it recently signed a final contract with GDF Suez, Toyota and Egypt-based Orascom to set up a 250 MW wind energy project in the Gulf of Suez. The three companies shall fund the project while the Ministry of Finance will provide financial guarantees. Electricity generated from the project will be sold to distribution companies through a 25-year power purchase agreement.
The project is among several large-scale wind energy projects being planned by international developers. The Ministry of Electricity reported that it will discuss implement of 250 MW project planned by Lekela Power-Actis and a 320 MW project by Italgen S.P.A.
Earlier this year, the Egyptian government had announced plans to raise funds worth €180 million to set up 2 GW wind energy capacity.
Last year Lekela Power, a joint venture company between Mainstream Renewable Power and investment firm Actis had announced plans to set up a 250 MW wind energy project in the Gulf of Suez region. Lekela Power had signed a memorandum of understanding to develop the project with the Egyptian Electricity Transmission Company. Lekela Power will develop, own, and operate the project, which is expected to require a total investment of $350 million.
Additionally, GE and Siemens are also reportedly planning to set up wind energy projects as well as wind turbine manufacturing facilities in Egypt.
