Alcazar Energy clinches $436M for two 250MW wind farms in Egypt

The Dubai-based fund manager said Monday it secured $436 million in financing for two wind farms on Egypt's Red Sea coast, projects carrying a combined price tag of $626 million. Niat and Rasgha will each run 250 megawatts of capacity and go up at Ras Ghareb on the Gulf of Suez. Commercial operations are targeted for the end of 2028.

Three development banks are splitting the debt down the middle — each taking a third. The European Bank for Reconstruction and Development, the European Investment Bank and Germany's DEG are all in. The power goes to the Egyptian Electricity Transmission Company under 25-year purchase agreements, with CEO Daniel Calderon putting the price at 3 cents per kilowatt hour.

Siemens Gamesa will supply the turbines and handle maintenance, while Orascom Construction takes on the civil and electrical works. Once spinning, the two farms should pump out more than 2.3 terawatt hours a year, roughly what 1.2 million homes use, according to government estimates.

Egypt wants renewables to hit 45% of its power generation by 2028. The push follows prolonged blackouts three years ago that were made worse by natural gas supply problems, and state finances have taken further strain from rising fuel prices.

Alcazar isn't done in the area. Earlier this summer it signed deals to invest in, operate and upgrade the state-owned 580 MW Gabal El Zeit wind complex south of Ras Ghareb in a $420 million transaction. Calderon said the company expects to close financing on that one by the end of the year, and argued that fuel disruptions tied to the wars in Ukraine and Iran have made the case for domestically generated renewable power.