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Egypt’s largest wind energy project secures African bank funding while Namibia unveils new local content policy
11/12/2024
News
Two energy projects across northern and southern Africa have taken steps toward independence from overseas investment. First, the African Development Bank (AfDB), headquartered in Abidjan, Ivory Coast, has approved a loan of up to $170mn to support the development of the 1.1 GW Suez Wind farm, currently Egypt’s largest wind energy initiative. Second, the Nambian government has announced a new upstream local content policy that aims to ensure development of the country’s oil and gas resources directly benefits its citizens.
Total costs for the Suez Wind project are put at $1.1bn. The AfDB’s financing is in addition to funding expected from a consortium of development finance institutions (DFIs), banks and other financial institutions.
The project is seen as a strategic initiative for the country and, as such, approvals have been streamlined in order to accelerate its implementation and contribution to Egypt’s renewable energy goals.
Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth at the AfDB, comments: ‘The Suez Wind project is a landmark development that underscores Egypt’s leadership in renewable energy and the Bank’s steadfast commitment to supporting transformative, clean energy projects across the continent. This project not only facilitates the government of Egypt’s efforts to achieve 42% of renewable energy in its energy mix by 2030, but also drives local economic growth and strengthens regional energy security.’
Wale Shonibare, the Bank’s Director of Energy Financial Solutions, Policy and Regulations, adds: ‘As the largest wind energy project in Egypt, this initiative exemplifies the scale of renewable energy potential across Africa. It demonstrates how strong partnerships and innovative solutions can advance the energy transition and foster sustainable economic development.’
The wind farm will be divided into two sites, each with a capacity of 550 MW, located along the Gulf of Suez. The Egyptian Electricity Transmission Company (EETC) will be the sole off-taker under a 25-year take-or-pay power purchase agreement (PPA). The project is expected to generate 4,111 GWh annually.
Namibia approves upstream local content policy
Meanwhile, Namibia is also looking to secure its own energy independence through a new upstream local content policy. Since 2022, the country has produced 5bn barrels of crude oil from nine wells in the offshore Orange basin, according to Westwood Global Energy Group and reported by digital news site Offshore, The nation on track for first oil production from the Venus and Graff discoveries by 2029.
The new policy aims to ensure that Namibia’s oil wealth benefits its citizens by integrating local businesses and the workforce into the value chain, reducing the nation’s dependency on foreign expertise.
The African Energy Chamber (AEC) – which serves as the voice of the African energy sector – has commended the policy, noting it is ‘designed to create a globally competitive supply chain while promoting sustainable development, energy independence and technological expertise within the country’. It adds: ‘It is clear that the policy is designed to balance the interests of local stakeholders with the needs of international oil companies, a model that other African nations can look to for guidance.’
