The OPEC Fund for International Development is co-financing the largest onshore wind energy project in Africa. The financial institution is contributing 30 million USD to the construction of two wind farms of 550 MW each, with a total capacity of 1.1 GW, in the Gulf of Suez region in Egypt.
Construction of Africa’s largest onshore wind farm
This investment plays an important role in the development of Egypt’s largest onshore wind farm a project expected to generate jobs, strengthen energy self-sufficiency, and stimulate the country’s economic growth. This initiative supports Africa’s objectives to increase renewable energy capacity and reduce dependence on fossil fuels.
Egypt’s commitment to renewable energy makes the country a pioneer in the energy transition in Africa. The OPEC Fund for International Development is pledging 30 million USD to help construct Africa’s largest onshore wind farm, the Gulf of Suez wind farm in Egypt. This funding emphasizes the continent’s shift towards renewable energies and reinforces Egypt’s leading role in this transformation.
These wind farms will supply power to more than one million households and reduce carbon emissions by 2.5 million tons per year. Implemented by Suez Wind, this project supports Egypt’s ambitious renewable energy goals.
Modernizing the grid and attracting investments
Egypt has made significant progress in developing its renewable energy sector, notably to address electricity shortages and supply green energy to Europe. However, challenges remain, such as the need to modernize the grid and attract investments for new wind and solar projects.
Despite investment efforts in the transmission grid, the growth of renewable energy capacity has stagnated since 2019. Renewable energies currently represent less than 12 % of Egypt’s total capacity, which amounts to nearly 60 GW.
The OPEC Fund’s investment is expected to stimulate economic growth by creating job opportunities during the construction and operation phases of the wind farm. Additionally, the project aims to strengthen Egypt’s energy independence by:
- Reducing its dependence on imported fossil fuels
- Improving energy security
- Promoting a more sustainable economic framework
Meeting the growing energy demand
This development is part of a broader movement across Africa, where countries are increasingly investing in renewable energy projects. The objective is to meet the growing energy demand and address environmental challenges. For example, Grid Africa received an equity investment of 50 million rand (2.8 million USD) to accelerate renewable energy initiatives in South Africa. The government aims to reduce rising energy costs and persistent electricity shortages.
The success of the Egyptian wind farm could serve as a model for other African countries by demonstrating the benefits of large-scale renewable energy initiatives. However, the project must overcome challenges, including grid infrastructure limitations and the need for coordinated political efforts to fully realize its potential.
The OPEC Fund’s investment in the Egyptian wind farm marks a decisive step in promoting renewable energies in Africa. The expected economic benefits of the project underscore the urgent need for sustained investments and growth in the continent’s renewable energy sector.
Boost to Egypt’s NWFE program
The project is part of Egypt’s Nexus of Water, Food, and Energy (NWFE) initiative, which promotes international investments in sustainable development. The country aims to reach 10 GW of renewable energy capacity by 2028.
Since 1976, the OPEC Fund has supported Egypt with over 1.3 billion USD for 85 projects. Past contributions include financing the Kom Ombo solar power plant and the South Helwan power plant. The Gulf of Suez wind farm strengthens the OPEC Fund’s partnership with ACWA Power, a leader in renewable energy. To date, the fund has dedicated more than 200 million USD to ACWA Power projects in several countries.
Together, these projects total 3 billion USD in costs and generate 3.5 GW of renewable energy capacity. This transformative program constitutes a major step towards Egypt’s clean energy transition and a sustainable future.
