AMEA Power, one of the fastest-growing renewable energy companies in the Middle East, announced that it has achieved a financial close to delivering 1 Gigawatt (GW) of Wind and Solar Energy projects in Egypt.
The historic 500 MegaWatts (MW) wind and 500 MW solar projects add 2 GW to the Company’s clean energy portfolio in Egypt and represent an investment of $1.1 billion.
The 500MW solar PV plant which will be owned and operated by AMEA Power will be located in the Aswan governorate of Egypt. Funding for the project will be coming from the International Finance Corporation (IFC), part of the World Bank Group, Dutch Entrepreneurial Development Bank (FMO) and the Japan International Cooperation Agency (JICA).
The Red Sea Governorate’s 500MW wind farm is being built in collaboration with Sumitomo Corporation, which will own a 40% equity stake in the project. Under Nippon Export and Investment Insurance (NEXI) protection, a group of institutions, including Japan Bank for International Cooperation (JBIC) and IFC, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and Sumitomo Mitsui Trust Bank, are providing the financing.
Hussain Al Nowais, Chairman of AMEA Power, said “These landmark projects reflect the long-term commitment, ambition and growth of AMEA Power. The Company is leading the development of renewable energy across Africa, which through its global and regional partnerships, will deliver clean energy to millions of people around the continent.
He added “We are proud to reach this significant milestone and to be supporting Egypt in its energy transition journey and drive to accelerate sustainable development. Today’s achievement would not have been possible without the hard work of AMEA power’s world-class team, the support of our project partners, lenders, advisors and the cooperation of the Egyptian government.”
The Egyptian Electricity Transmission Company (EETC) has granted both the projects already secured Power Purchase Agreements (PPAs) and Usufruct Agreements. The New and Renewable Energy Authority (NREA) has also concluded its feasibility studies.
When it is finished, the 1GW plant will be able to export 800,000 tonnes of green ammonia annually.
On the fringes of the United Nations Climate Change Conference (COP27) in Sharm El-Sheikh, AMEA Power also recently inked a Framework Agreement with the Egyptian government to create a sizable green hydrogen project that will act as a feedstock for the creation of green ammonia.
All these projects showcase the renewable energy ambitions of Egypt and help the economic and social growth within the region. The goal of the Egyptian government is to raise the supply of electricity through renewable energy sources to 42% by 2035.
