The European Bank of Reconstruction and Development (EBRD) is evaluating a senior debt financing loan of up to $200 million for a 1,100 MW wind project in Egypt's Gulf of Suez region. The total investment for the wind farm, which is being developed by Suez Wind Energy SAE, amounts to $1 billion.
Suez Wind Energy will be a special purpose vehicle, backed by a consortium of sponsors including ACWA Power and Hassan Allam Utilities (HAU) Energy. ACWA Power brings extensive experience in power generation, desalination, and green hydrogen projects, while HAU Energy is a renewables equity platform that is jointly owned by Meridiam (45%), HAU (30%), and EBRD (25%).
The project involves the development of two plots of land in the Gulf of Suez. While the southern plot is located in the Gebel El Zeit Important Bird Area, a Critical Habitat for migrating birds, the northern plot lies outside of the designated area but still experiences significant bird migration. This raises concerns about potential risks to birdlife, which will be mitigated through an Active Turbine Management Programme, using radar technology to shut down turbines on demand to reduce collision risks.
Environmental and social impact assessments, including bird surveys, have been conducted to comply with EBRD's requirements, ensuring no net loss of biodiversity, particularly for migrating birds. The development will also focus on achieving a net gain in biodiversity for the critical areas.
The EBRD's involvement will be crucial in financing the project, contributing to Egypt's renewable energy capacity while addressing environmental concerns related to bird migration.
