Power purchase agreement (PPA) signed between Lekela Power and the Egyptian Electricity Transmission Company (EETC) for 250MW wind farm project in the Gulf of Suez, near Ras Ghareb.
H.E. the Egyptian Prime Minister Dr. Mostafa Madbouly; H.E. Dr. Mohamed Shaker El-Markabi, Egypt’s Minister of Electricity and Renewable Energy; Eng. Sabah Mashaly Chairperson of the EETC, Chris Antonopoulos, Chief Executive Officer, Lekela and Faisal Eissa, Egypt General Manager, Lekela were present at the signing of the agreement.
It is Located 30 kilometres north-west of Ras Ghareb, this project is also a part of the Government’s Build, Own, and Operate (BOO) scheme. Once built, it will raise Egypt’s wind energy capacity by 14%.
The project wills creat more than 1000GWh a year, powering the similar of over 350,000 homes in Egypt.
The Network Connection Agreement with EETC is also signed. The overall investment for the project is estimated at $325 million and leading Development Finance Institutions have been administered to provide financing.
The project will be constructed on a turnkey EPC basis and an announcement regarding the EPC contractor will be made at a later date.
The project is expected to be operational in 2021 and Financial close is expected to take place later this year.
“Egypt has a target of achieving 20% renewable power in its complete energy mix by 2022. Today’s deal is a major milestone for delivering a 250MW wind farm to help achieve that goal. We would like to thank the Minister of Electricity and Renewable Energy, EETC, The Egyptian Electricity Holding Company (EEHC), Egypt’s New and Renewable Energy Authority (NREA), the Minister of Investment and all those people, both in Egypt and beyond the country, who have assisted us get to this point. Chris Antonopoulos, Chief Executive Officer at Lekela said.
Across Africa we are incorporating to see the positive impact renewable energy can have on communities and on enterprise. Egypt is a important part of our strategy to develop 1,300MW of clean energy across Africa which will take along economic and social prosperity for its communities.”
Faisal Eissa, General Manager, Egypt, Lekela noted: “We are delighted to progress this project with the signing of the PPA. Egypt has positive conditions to produce renewable energy and it is great to see that the government has ambitions to bring more clean energy onto the grid.