252 MW Wind Power Plant inaugurated in Gulf of Suez

The Inauguration of the 252 MW Wind Power Plant in the Gulf of Suez in Egypt took place on May 28, 2024 and was honoured by the patronage of H.E. Dr. Moustafa Madbouly (Prime Minister of Egypt), H.E. Dr. Mohamed Shaker (Minister of Electricity and Renewable Energy), H.E. Amb. Christian Berger (Head of the Delegation of the European Union to Egypt), H.E. Amb. Frank Hartmann (Ambassador of the Federal Republic of Germany), H.E. Amb. Eric Chevallier (Ambassador of France) and Dr. Mohamed El Khayat (Chairman of the New and Renewable Energy Authority of Egypt). The windfarm is a significant step towards clean and sustainable energy for Egypt and will enhance energy efficiency, ensure reliable electricity supply and reduce harmful emissions. It is also the result of European Development Partner’s and Egypt’s intensified cooperation in the clean energy sector.

The windfarm is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) through KfW Development Bank (KfW) as lead financing agency, the European Union, the European Investment Bank (EIB) and Agence Française de Développement (AfD).   

The Wind Power Plant features 70 Wind Turbines (Vestas V105-3.6 MW) at the Gulf of Suez about 25 km south of Ras Gharib. Per year, approx. 1200 GWh of green electricity will be produced and can supply about 400,000 households with electrical energy. Thus, 500,000 tons of CO2 emissions are being saved year by year. 

Ambassador Christian Berger, Head of the European Union Delegation to Egypt said "Renewable energy is vital to achieving climate neutrality and energy security, and Egypt possesses key assets: sun and wind. The EU is the world's biggest provider of climate finance, accounting for more than 40% of worldwide public climate funds through its Member States. In our partner countries, we use technical assistance, capacity building, investments and guarantees to mitigate risks and leverage private participation.  With the appropriate investment and legislation, renewable energy can become mainstream, opening up new markets, economies of scale and business opportunities." 

Ambassador Frank Hartmann outlined: “The longstanding and fruitful Cooperation between Egypt and Germany in the energy sector is bearing fruits. The Gulf of Suez Wind Power Plant is a prime example for how we jointly with partners take concrete measures towards Just Green Energy Transition. This benefits all of our countries as climate change is not stopping at national borders and brings Egypt one step closer to its target of 42% Renewable Energy by 2030”.

Guido Clary, Head of EIB regional office in Cairo said "The EIB is proud to have supported this project under Team Europe initiative, enabling Egypt to take a key step towards its ambitious objective of increasing the share of renewable energy. This renewable energy project is intended to significantly contribute to climate action objectives by lowering Egypt's rising electricity supply shortfall through the use of sustainable wind energy resources."

The French ambassador, Eric Chevallier highlighted Egypt's remarkable energy journey, as it aspires to become a regional green hub in Africa, by rapidly transitioning and capitalizing on its abundant wind and solar resources: “The inauguration of this pioneering renewable energy project marks a significant milestone in our longstanding partnership between Egypt and Europe. France remains strongly committed to playing an active role in enabling Egypt’s renewable ambitions and building up new and innovative value chains.”

One focus lays on protecting migrating birds crossing the wider area of the project along the Red Sea Cost from August to November and from February to May. Bird watchers observe the surrounding of the Wind Power Plant with telescopes and binoculars. As flocks of birds are being observed, the bird watchers give commands to the Wind Power Plant operators to shut-down the respective wind turbines in order to protecting the birds from collision with the rotating wind turbine blades.

The Minister of Electricity and Renewable Energy of Egypt said, “This project represents the long journey of cooperation between Egypt and the European Development Partners, EDPs, in the field of renewable energy. In addition, it matches with Egypt’s efforts in the field of energy transition. We do believe that we will build on it in the future cooperation”. 

During the Wind Power Plant construction, occupational health and safety played a major role. The project achieved 1,706,553 of working hours without lost-time injury since its start and over 500 professionals received Health Safety and Environmental training. Inhabitants from the Ras Ghareb community worked throughout all project phases at the Wind Power Plant and reached a share of up to 68%. With their support, they contributed significantly to the successful implementation of the project.

Egypt's electricity sector is undergoing a transformation towards low-carbon energy sources and updated its Nationally Determined Contribution (NDC) in June 2023. In future, Egypt plans to boast abundant natural resources, particularly in wind and solar energy. The country has a potential to generate up to 350 GW from wind power and 650 GW from solar photovoltaic systems. Over 40,000 square kilometers have been allocated for implementing renewable energy projects, with plans to host approximately 150 GW from solar farms and 120 GW from wind farms.

To incentivize investment in renewable energy projects, Egypt has introduced measures such as signing long-term power purchase agreements (PPAs) for 25 years and offering custom duty exemptions on imported materials and equipment for renewable energy installations. These initiatives aim to attract further domestic and international investments.