The New and Renewable Energy Authority (NREA) is set to pose a tender for the installation of a 250MW windmill by the middle of next year.
The project will be funded by the Agence Francaise de Developpement (AFD), the European Union, KfW Development Bank, and the European Investment Bank (EIB), chairperson of the authority Mohamed Salah El-Sobky told Daily News Egypt.
The total value of the project registers €345m; it will be established in the Gulf of Suez area and is scheduled to be operational in 2020.
The wind farm will increase Egypt’s energy output by about 700 GW/hour each year, thus contributing to lowering carbon dioxide emissions resulting from electricity generation, equivalent to 30,000 tonnes per year.
The funding institutions support the Egyptian government’s goal to generate 20% of electricity from renewable sources by 2022.
Minister of International Cooperation Sahar Nasr said the AFD has financed a number of projects worth €889m, including €886m in funding and €3.176m in grants. This is in addition to €103m worth of grants from the EU and managed by the AFD.
Nasr added that these projects include €80m in funding for small and micro enterprises on behalf of the Social Fund for Development, as well as €30m for small- and medium-sized enterprises operating in agriculture. The AFD has also funded sanitation and drinking water projects.
Amongst the projects funded by AFD comes the third phase of the third Cairo Metro line, which was funded with €300m. The AFD is running a grant agreement worth €68m to link homes to natural gas.