EBRD approves £207m loan for Lekela’s 250MW wind farm in Egypt
August 12, 2019 – The European Bank for Reconstruction and Development (EBRD) has approved $252m (£207.4m) funding for the construction of Lekela Power’s new 250MW wind farm, West Bakr Wind, in the Gulf of Suez, Egypt.
Planned to be built in the Gulf of Suez, 30km northwest of Ras Ghareb, the West Bakr Wind will receive the approved financing jointly from the EBRD, the International Finance Corporation (IFC), which is a member of the World Bank Group, and the Overseas Private Investment Corporation (OPIC).
Said to be the second privately-owned project in Egypt, West Bakr Wind farm will be constructed and operated by Lekela Egypt Wind Power which is owned by Lekela Power.
Independent power producer, Lekela Power, is a joint venture of Actis Energy Fund III and Mainstream Renewable Power.
A part of the Egyptian Government’s Build, Own, Operate (BOO) scheme, the West Bakr Wind is expected to increase the country’s wind energy capacity by 14%.
Egypt aims to generate 20% of its total electricity from renewable sources by 2022.
Lekela plans to commence construction on West Bakr Wind project shortly.
Scheduled to be fully operational in 2021, the wind farm will have the capacity to produce more than 1,000GWh per year and power more than 350,000 homes.
Lekela CEO Chris Antonopoulos said: “This is a major milestone, not just for Lekela and its partners, but also for Egypt and its clean energy strategy. We are proud to play a part in supporting the diversification of Egypt’s generation capacity by delivering best-in-class clean energy projects.
“As our first project in Egypt, we have enjoyed working closely with partners and stakeholders, including the Egyptian Electricity Transmission Company (EETC) and the New and Renewable Energy Authority (NREA), to get to this point.”
EBRD said that the proposed wind farm will provide clean energy at an unsubsidised tariff that is below the cost of conventional power.