Lekela Power signs PPA for 250-MW wind project in Egypt

Lekela Power, a pan-African renewable energy generation company, has sealed a power purchase agreement (PPA) with the Egyptian Electricity Transmission Co (EETC) for its 250-MW wind farm in the Gulf of Suez.

The wind farm will be installed near Ras Ghareb and is slated for commissioning in 2021, reports indicated on Wednesday.

Once operational, the 73-turbine wind farm will be able to generate more than 1,000 GWh of electricity per year, or enough to supply over 350,000 homes.

Located 30 km north-west of Ras Ghareb, the project is part of the Government’s Build, Own, Operate (BOO) scheme. Once constructed, it will increase Egypt’s wind energy capacity by 14% and support the government’s 20% renewable goal by 2020.

The total investment for the project is estimated at $325 million. Leading Development Finance Institutions have been approached for financing.

In this connection, the company has requested long-term senior debt financing of up to $81.4 million from the European Bank for Reconstruction and Development (EBRD).

The project will create employment opportunities locally and contribute to implement socio-economic development projects in the area.