The World Bank’s Board of Executive Directors today approved a loan in the amount of $ 220 million for Egypt to support Wind Power Development Project, out of which $150 million is financed from the Clean Technology Fund (CTF). This is the first CTF supported project in the Middle East and North Africa region.
The project will support the renewable energy strategy of Egypt, which has given the utmost priority to the large scale renewable energy electricity generation program which can serve both national and regional goals of achieving fossil fuel savings, protection of the environment, and the creation of green jobs and technology transfer.
Some of the world’s best wind power resources are in Egypt, especially in the areas of the Gulf of Suez, where at least 7,200 MW could be potentially developed by 2022, with further 3,000 MW on the west and east banks of the Nile. Under its large scale development of renewable resources strategy, Egypt plans to have 20% of its installed generation capacity in the form of renewable by 2020.
The project’s development objective is to develop infrastructure and business models for scaling-up wind power in Egypt. It comprises transmission infrastructure development and support for the construction of the first 250 MW wind project in the Gulf of Suez and Gabel El-Zait. The project will connect the future wind parks at Gulf of Suez and Gabel El-Zait to the national network.
“One of the outcomes of this project is to reduce GHG emissions through facilitating the development of clean energy resources (wind power) which will result in displacing thermal (fossil fuel-based) generation,” said Chandrasekar Govindarajalu, the World Bank’s Task Team leader. “Furthermore, the project has several elements that make a strong case for replicability. The Egyptian experience, being the most extensive in the region, will be applicable for many of the other MENA countries,” he added.
It is also worth noting that on June 8, the World Bank’s Board of Executive Directors approved a loan in the amount of $ 600 million for Egypt to support Giza North Power Project. The project supports the Government of Egypt’s power sector investment plan to meet the growing electricity demand in the country and ensure access to reliable supply of power – all are prerequisites for sustained economic growth and achieving the country’s social development agenda.