Red Sea Wind Energy has signed a $680 million agreement with banks and international financing organizations for establishing a wind farm in Egypt’s Gulf of Suez, the Egyptian cabinet said in a statement.

The 500-megawatt wind farm is to be located near Ras Ghareb city and is “one of the biggest wind energy projects in Egypt and Africa”, according to Egypt’s minister of electricity and renewable energy.

The agreement was signed by representatives of the Red Sea Wind Energy Company, the Japanese Cooperation Bank (JBIC), Heike Harmagart, Representative, and the European Bank for Reconstruction and Development (EBRD).

The station is scheduled to be connected to the national grid in two phases, with full commercial operation planned during the third quarter of 2025, according to the cabinet’s statement.

The project is one of the largest wind energy projects in Egypt and Africa, Minister of Electricity, Mohamed Shaker noted.

Shaker explained that the role of the Red Sea Wind Energy Company is to operate and maintain the wind farm under a 25-year power purchase agreement (PPA), which it signed with the Egyptian Electricity Transmission Company.

Khaled El-Degwi, Chairperson of Red Sea Wind Energy, said that the company will build, own and operate the wind farm.

He explained that the company’s ownership structure is divided into a consortium that includes: ENGIE at 35%, Orascom Construction at 25%, Toyota Tsusho Corporation at 20%, and Eurus Energy Holdings at 20%.

Orascom Construction is carrying out the civil and electrical works for the wind farm, El-Degwi noted.

 “The European Bank for Reconstruction and Development continues to support the green transition process in Egypt, as it announced the issuance of development financing amounting to $100 million for the Red Sea Wind Energy Company to finance the development, construction, and operation of a 500-megawatt wind farm in the Gulf of Suez region,” according to the ministry of international cooperation. 

The financing consists of up to $50m from the European Bank for Reconstruction and Development and up to $50m from the Green Climate Fund.

The renewable energy projects enhance Egypt’s chances of exporting electricity to Europe, Asia and Africa through expanding electrical interconnection projects with neighboring countries.