09 Jan 2023

Financial Close Attaind for Abydos Solar and Amunet Wind Power Projects in Egypt

09 Jan 2023  by   

A financial close has been announced by AMEA Power Ltd. for 1,000-MW Abydos solar and Amunet wind power projects in Egypt, making way for construction to begin.

The 500MW Abydos solar plant, which is situated 600km south of Cairo in the Aswan governorate, and the 500MW Amunet wind farm, which is situated 318km south of Cairo in the Red Sea governorate, will be built, owned, and operated by the fully owned subsidiaries of the United Arab Emirates-based AMEA Power—Abydos Solar Power Co. and Amunet Wind Power Co. Completion of these two projects would increase AMEA Power’s clean energy projects in Egypt to 2 GW. The lowering costs for renewable energy sources are one factor driving the projects.

“These historic projects are a reflection of AMEA Power’s long-term dedication and expansion,” says Hussain, chairman of AMEA Power.

Cheick-Oumar Sylla, regional director for IFC in North Africa and the Horn of Africa said, “The two renewable energy projects highlight the private sector’s essential role. Helping to deliver clean, affordable power, especially at a time of growing challenges from pressures on the environment”

Sylla added, “We are happy to support AMEA’s growth into Africa and its relationship with Egypt. In order to hasten the country’s transition to renewable energy because of Egypt’s lofty renewable energy aspirations.”

AMEA Power was unable to guarantee when the solar and wind power projects would begin. However, the company anticipates the wind farm to go online in the second quarter of 2025. And the solar photovoltaic (PV) facility to go online in the first quarter of 2025.

International Finance Corp. (IFC), Dutch Entrepreneurial Development Bank, and Japan International Corp. Agency (JICA) have all supplied funding for the Abydos PV project. The developer of the wind farm project is a joint venture with Japanese investment behemoth Sumitomo Corp. Funding has been provided by Japan Bank for International Cooperation, IFC, Standard Chartered Bank, and Commercial International Bank. Under the Nippon Export & Investment Insurance, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank are taking part in the project as co-lenders.

Egypt had set renewable energy targets of 20% of its electricity mix by 2022 and 42% by 2035.


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