Chapter 6 | PROJECTS
annually, directly supporting Egypt’s climate action commit- ments. The project is expected to supply enough clean ener- gy to power more than 1 million households, while offsetting 2.4 million tons of CO 2 emissions a year. Additionally, the pro- ject is expected to generate new employment opportunities through the construction, operation and maintenance of the wind power facilities, particularly benefiting local communi- ties and contributing to skill development in renewable ener- gy technologies. By diversifying Egypt’s energy sources, the project will improve the resilience of the energy mix, helping to mitigate risks of power shortages during extreme heat waves or water-scarce periods and enhancing the country’s capacity to cope with climate-related disruptions. Further- more, the project is anticipated to serve as a model for future clean energy ventures, attracting additional private invest- ment into Egypt’s renewables sector and reinforcing national efforts to modernize and make the energy system compatible with the environment.
“Egypt’s country platform for the Nexus of Water, Food and Energy Program stands as a testament to our unwavering commitment to the green transition, also underscoring the power of international cooperation and Egypt’s ability to mobilize financing for the private sector. The Gulf of Suez Wind Power Plant project in particular is an example of this, reflecting the dynamic partnership between national entities and key part- ners including the OPEC Fund, EBRD, AfDB and many others, as well as private sector stakeholders. Exemplifying how strategic cooperation between public, private and international players can drive impactful change in the renewable energy sector, the Gulf of Suez Wind Power Plant is also part of Egypt’s broader ambition to generate 10 GW of clean energy under the Nexus of Water, Food and Energy Program, with this specific project expected to deliver over 500 MW of clean energy. By harnessing the Gulf of Suez’s natural wind resources we are diversifying our energy portfolio, reducing carbon emissions and advancing our ambitious climate targets. By fostering such collaborations, Egypt is positioning itself as a regional hub for renewable energy. Together, we are trans- forming our energy sector, creating jobs and driving economic growth through sustainable infrastructure investments.”
Assessment according to the Joint MDB Methodology for Tracking Climate Finance
Investments in wind power are recognized as eligible mitiga- tion finance under the Joint Methodology for Tracking Climate Finance. According to the Common Principles for Climate Mit- igation Finance Tracking, wind power projects fall under the category “renewable energy generation”, specifically the eli- gible activity “generation of renewable energy with low lifecy- cle GHG emissions to supply electricity, heating, mechanical energy or cooling.” These investments are therefore in princi- ple eligible to be classified as mitigation finance. Furthermore, both investments meet additional criteria re- quired to determine eligibility. These criteria stipulate that GHG emissions from renewable energy generation must be substantially lower than those from fossil fuel-based gen- eration without carbon capture and storage or utilization. However, in accordance with established guidance such emission assessments are not required for technologies that are widely recognized as having very low lifecycle emissions such as wind, solar and tidal energy. On this basis, the investment is considered eligible to be fully counted as mitigation finance. The mitigation finance contribution is estimated at US$40 million, corresponding to 100 percent of the OPEC Fund’s approved investment amount for this project.
RANIA A. AL-MASHAT Minister of Planning, Economic Development and International Cooperation, Egypt
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