UAE’s Amea Power completes $1.1bn renewable energy deal in Egypt

AMEA Power, the UAE-based developer of solar and wind plants, has reached a financial close for a 1 GigaWatt (GW) project in Egypt.

It represents $1.1bn of investment into Egypt’s economy and takes the company’s clean energy portfolio in the country to 2GW through the 500 MegaWatt (MW) wind and 500MW solar projects.

AMEA Power will build, own and operate the 500MW solar PV plant, which will be located in the Aswan governorate of Egypt.

The project is being financed by the International Finance Corporation (IFC), part of the World Bank Group, the Dutch Entrepreneurial Development Bank and the Japan International Cooperation Agency.

#AMEAPower has achieved the financial close to deliver 1GW of #renewableenergy projects in #Egypt. The 500MW #wind & 500MW #solar projects, represent US$1.1bn of #investment and takes the Company’s clean energy portfolio to 2GW in the country.https://t.co/eh8JkNI50d pic.twitter.com/UkXUkFPcet

— AMEA Power (@AmeaPower) November 30, 2022

Meanwhile, the 500MW wind farm, located in the Red Sea Governorate, is being developed in partnership with Sumitomo Corporation, who will own 40 per cent equity in the project.

Financing is being provided by a consortium of banks, including Japan Bank for International Cooperation and IFC, together with Standard Chartered Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank participating as co-lenders under Nippon Export and Investment Insurance cover.

Both projects have already secured power purchase agreements with the Egyptian Electricity Transmission Company and Usufruct Agreements, with the new and Renewable Energy Authority.

Hussain Al Nowais, chairman of AMEA Power, said, “These landmark projects reflect the long-term commitment, ambition and growth of AMEA Power. The company is leading the development of renewable energy across Africa, which through its global and regional partnerships, will deliver clean energy to millions of people around the continent.

AMEA Power has also recently signed a framework agreement with the Egyptian Government, on the sidelines of the United Nations Climate Change Conference (COP27) in Sharm El-Sheikh, to develop a large-scale green hydrogen project, which will serve as a feedstock for the production of green ammonia.

Once completed, the 1GW plant will be able to produce 800,000 tonnes of green ammonia per year for export.

Read: UAE’s AMEA Power to build two solar power projects in Morocco