Egypt has secured a $40 million loan from the OPEC Fund for International Development to advance the construction of two large-scale wind farms in the Gulf of Suez. Announced on December 12, 2024, this ambitious project, spearheaded by Hassan Allam Utilities and Saudi Arabia’s ACWA Power, is poised to become the largest onshore wind energy initiative in the Middle East, with a combined capacity of 1.1 GW of clean energy.
The $1.1 billion undertaking has already attracted substantial international financial backing. Key contributors include the European Bank for Reconstruction and Development (EBRD), which committed $200 million, and the African Development Bank (AfDB), which provided $170 million. These investments underscore the global confidence in Egypt’s renewable energy sector and its potential to drive regional sustainability.
When completed, the wind farms will provide renewable electricity to over 1.3 million households, significantly contributing to Egypt’s strategic goal of sourcing more than 40% of its energy from renewables by 2035. The project is also expected to reduce the country’s reliance on fossil fuels and lower greenhouse gas emissions, aligning with Egypt’s broader climate commitments.
Set for completion by 2026, the Gulf of Suez wind farms represent a pivotal step in Egypt’s transition to sustainable energy. Beyond meeting domestic needs, the initiative highlights the country’s emerging leadership in the region’s renewable energy sector, potentially positioning Egypt as a hub for clean energy development and innovation in the Middle East and North Africa.
This landmark project is part of Egypt’s broader vision to diversify its energy mix, attract foreign investment, and reinforce its role as a key player in global efforts to combat climate change.