AMEA Power has reached financial close on its plan to build 1 GW of renewable energy projects in Egypt, with a $1.1 billion investment.
The project aims to double AMEA’s investments in Egypt’s clean power sector.
The company celebrated the achievement with a signing ceremony involving Prime Minister Mostafa Madbouly. Also involved were AMEA’s partners and financiers.
The AMEA plan involves 500 MW of wind capacity and the same of solar photovoltaic (PV).
The International Finance Corp. (IFC), the Netherlands’ FMO and the Japan International Co-operation Agency (JICA) have provided financing for the solar plan.
AMEA will work with Sumitomo on the wind project, with the Japanese company taking a 40% stake. Japan Bank for International Co-operation (JBIC) and IFC are providing financing for the wind plan. Standard Chartered and Sumitomo Mitsui Banking Corp. (SMBC) are also co-lenders, backed by cover from Nippon Export and Investment Insurance (NEXI).
AMEA chairman Hussain Al Nowais said the projects reflect the company’s long-term ambitions.
“We are proud to reach this significant milestone and to be supporting Egypt in its energy transition journey and drive to accelerate sustainable development,” he said.
Egypt aims to increase its share of renewable energy to 42% by 2035.
IFC regional director Cheick-Omar Sylla said the plans would help deliver “clean affordable power, especially at a time of growing challenges from climate change and pressures on the environment”.
The company will build the solar PV project in the Aswan governorate and the wind project in the Red Sea governorate. They should both start up in 2025.
AMEA has signed power purchase agreements (PPAs) for the two projects with the Egyptian Electricity Transmission Co. (EETC).
AMEA recently signed on a to 1 GW green ammonia project in Egypt, during COP27. The plant will produce 800,000 tonnes per year of ammonia. The company will build the project at Ain Sokhna, in the Suez governorate. AMEA will take a final investment decision (FID) on the project within two to three years.