ACWA Power and HAU Energy finalise financing for Suez Wind Farm

ACWA Power, a global leader in renewable energy and desalination, in partnership with HAU Energy, has reached financial close for the 1.1GW Suez Wind Farm. Situated in the Gulf of Suez and Gabal El-Zeit regions near Ras Gharib, this monumental project marks a critical step in Egypt‘s ambitious plan to source 42% of its electricity from renewable energy by 2040.

With an investment of $1.2 billion, the Suez Wind Farm will be the largest single-contracted wind energy project in the Middle East, underscoring Egypt’s commitment to a sustainable energy future. The project has secured $703.6 million in senior debt financing from a consortium of international lenders, including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), and the OPEC Fund for International Development, reflecting strong investor confidence in Egypt’s renewable energy sector.

Suez Wind Farm: A Milestone for Renewable Energy in Egypt

The Suez Wind Farm will significantly enhance Egypt’s clean energy infrastructure, generating enough electricity to power over 1,080,000 homes annually. Designed under a “Build, Own, Operate” (BOO) model, the project will save 2.4 million tonnes of carbon dioxide emissions each year.

The wind farm, which will feature 138 turbines with a height of 210 metres and an 8MW capacity each, will be developed in two phases of 550MW each. Once operational, the energy generated will feed into Egypt’s national grid under a 25-year Power Purchase Agreement with the Egyptian Electricity Transmission Company (EETC), ensuring stable and reliable electricity supply.

Strategic Partners Powering Egypt’s Clean Energy Vision

ACWA Power and HAU Energy bring together unmatched expertise and resources to execute the Suez Wind Farm. ACWA Power, holding a 70% stake in the project, leads in financing, engineering, and operations. HAU Energy, backed by Hassan Allam Utilities, owns the remaining 30% and contributes its extensive experience in renewable energy development in Egypt.

Marco Arcelli, CEO of ACWA Power, emphasized the project’s role in achieving Egypt’s decarbonisation targets and economic growth goals. He highlighted the importance of international partnerships and innovative financial solutions in delivering transformative projects like the Suez Wind Farm. Similarly, Amr Allam, Co-CEO of Hassan Allam Holding, underscored the importance of clean energy in shaping a sustainable future for Egypt.

A Catalyst for Economic Growth and Sustainability

The Suez Wind Farm is more than an energy project; it is a catalyst for economic growth and technological advancement. By creating jobs during construction and operations, the project will contribute to local economic development while fostering innovation in Egypt’s renewable energy sector.

ACWA Power’s ongoing commitment to Egypt is evident in its existing projects, including a 120MW solar PV facility in Benban and a 200MW solar project in Kom Ombo. The company is also exploring a green hydrogen project with an initial capacity of producing 600,000 tonnes of green ammonia annually. These initiatives align with Egypt’s broader strategy to become a regional leader in renewable energy.

Looking to the Future: Full Operations by 2027

With commercial operations for the Suez Wind Farm expected to commence by Q2 2027, the project serves as a beacon for Egypt’s renewable energy aspirations. It not only enhances the country’s energy mix but also reinforces its position as a hub for clean energy investments in the Middle East.

Through the combined efforts of ACWA Power, HAU Energy, and global financial institutions, the Suez Wind Farm demonstrates the potential of public-private partnerships in addressing climate challenges and driving economic progress.