UAE’s AMEA Power, one of the fastest growing renewable energy companies, has reached financial close to deliver 1 GW of renewable energy projects in Egypt. The landmark 500 MW wind and 500 MW solar projects represent $1.1 billion of investment in the Egyptian economy and bring the company’s clean energy portfolio to 2 GW in the country.
Egyptian Prime Minister Mostafa Madbouly attended the signing ceremony of financial closing agreements between the Emirati company AMEA Power and a number of international financial institutions.
AMEA Power will develop, own and operate the 500 MW solar photovoltaic power plant, which will be located in the governorate of Aswan in Egypt. The project is funded by the International Finance Corporation (IFC), part of the World Bank Group, the Netherlands Bank for Entrepreneurial Development (FMO) and the Japan International Cooperation Agency (JICA).
The 500 MW wind farm, located in the Red Sea Governorate, is being developed in partnership with Sumitomo Corporation, which will hold 40% of the project capital. The financing is provided by a consortium of banks, including Japan Bank for International Cooperation (JBIC) and IFC, as well as Standard Chartered Bank, Commercial International Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank participating as co-lenders in the executive of Nippon Export and Investment Insurance (NEXI).
Both projects have already entered into power purchase agreements (PPAs) with the Egyptian Electricity Transmission Company (EETC) and usufruct agreements, with the New and Renewable Energy Authority (NREA) having already completed their studies feasibility.
The signing ceremony took place in the presence of Mohamed Shaker, Minister of Electricity and Renewable Energy, Rania Al Mashat, Minister of International Cooperation, Maryam Al Kaabi, Ambassador of the United Arab Emirates to Egypt, Oka Hiroshi, Ambassador of Japan in Egypt, and Hussein Jassim Al Nowais, president. of Emiya Power, a number of Emirati business leaders and representatives of international financial institutions.
Hussain Al Nowais, Chairman of AMEA Power, said: “These flagship projects reflect AMEA Power’s long-term commitment, ambition and growth. The company is leading the development of renewable energy across Africa, which through its global and regional partnerships will provide clean energy to millions of people across the continent.
“We are proud to have reached this important milestone and to support Egypt in its energy transition journey and its desire to accelerate sustainable development. Today’s achievement would not have been possible without the hard work of AMEA power’s world-class team, the support of our project partners, lenders, advisors and the cooperation of the Egyptian government.
The projects will support Egypt’s renewable energy ambitions, while supporting economic and social development in the region. The Egyptian government is working to increase the supply of electricity generated from renewable sources to 42% by 2035.
“These projects highlight the essential role of the private sector in helping to provide clean and affordable energy, especially at a time of growing challenges related to climate change and environmental pressures,” said Cheick-Oumar Sylla, IFC Regional Director for North Africa and the Horn of Africa. Africa. “Egypt has ambitious renewable energy goals and we are proud to support AMEA’s expansion into Africa and its partnership with Egypt to accelerate the country’s transition to renewable energy.
Mohamed Shaker, Minister of Electricity and Renewable Energy, said on the sidelines of the signing that AMEA Power was able to achieve a successful financial close with the aim of establishing two power generation plants from the solar energy and wind energy, with a capacity of 1,000 megawatts, to strengthen the Egyptian market’s dependence on renewable energies.
AMEA Power also recently signed a framework agreement with the Egyptian government, on the sidelines of the United Nations Climate Change Conference (COP27) in Sharm el-Sheikh, to develop a large-scale green hydrogen project, which will serve raw material for the production of green ammonia. Once completed, the 1 GW plant will be able to produce 800,000 tonnes of green ammonia per year for export.
AMEA Power is rapidly expanding its investments in wind, solar, energy storage and green hydrogen, demonstrating its long-term commitment to the global energy transition. The company has a clean energy pipeline of nearly 6 GW in 15 countries.