Red Sea Wind Energy Secures $51M in International Loan Agreements

Anthony Watson, Red Sea Wind Energy CEO

Egypt’s Red Sea Wind Energy has secured a $51 million loan from the Japan Bank for International Cooperation (JBIC) as part of project financing for its Ras Ghareb wind farm. The project has also received co-financing from the European Bank for Reconstruction and Development (EBRD), Sumitomo Mitsui Banking Corporation, the Norinchukin Bank, and Société Générale, bringing the total funding to $106 million.

Owned by a consortium comprising Engie, Orascom Construction, Toyota Tsusho Corporation, and Eurus Energy Holdings, the company is expanding the wind farm's capacity by 150MW to reach 500MW. Nippon Export and Investment Insurance will provide political and commercial risk coverage for the $35 million commercial portion of the project.

Located in the Gulf of Suez, the project is supported by a 25-year power purchase agreement with the state-owned Egyptian Electricity Transmission Company, backed by a government guarantee. This expansion aligns with Egypt’s revised goal of integrating 40% renewables into its energy mix by 2040, down from its earlier target of 58%.

The initial phase of the project was financed in March last year with a $501 million loan, including $240 million from JBIC and contributions from other financiers.

Source: Brinda Darasha / Zawya