The European Bank for Reconstruction and Development (EBRD) will extend USD 252 mn in funding to the 250-megawatt West Bakr Wind in Egypt’s Red Sea governorate, aiming to bolster the country’s production of clean energy, lower generation costs, and diversify its energy mix, Invest-Gate reports.

Located in the Gulf of Suez, the wind power plant – the biggest in Africa – will be jointly funded by the International Finance Corporation (IFC) and the Overseas Private Investment Corporation (OPIC). It will produce over 1,000 gigawatt hours per year, at a tariff well below the average cost of generation in Egypt, powering more than 350,000 homes and averting over 550,000 tons of annual carbon dioxide emissions, according to an official statement on August 8.

Part of the government’s build-own-operate (BOO) framework, the second privately-owned wind farm nationwide will be constructed and operated by Lekela Egypt Wind Power BOO, a subsidiary of Lekela Power. It marks a key pillar of targets to generate 20% of electricity from renewable energy sources by 2022, reducing Egypt’s reliance on natural gas, the statement added.

In addition, it supports private sector development and financing, building on the World Bank (WB) Group’s success with the landmark 1.5-gigawatt Benban solar complex in promoting well-structured, bankable projects, for which EBRD is the largest financier.

Aswan’s Benban Solar Park, poised to be largest worlwide upon completion, will be fully operational during the current year, according to a ministerial statement on May 5. The 37-square-kilometer development was recognized last March by the WB Group as one of the top initiatives it has taken part in during 2019, marking the first time the North African country attains such an award.