Investment of $596m to come from international financiers
Plans are underway to build two 500MW wind farms according to Daily News Egypt. The project is being spearheaded by Egypt-based Elsewedy Electric in-cooperation with the Marubeni Corporation of Japan.
The former is now said to be in negotiations with the New and Renewable Energy Authority (NREA), for the allocation of land for the two powerplants. The report also noted that Elsewedy is choosing between a plot of land in the Gulf of Suez and another that is west of the Nile.
Both Elsewedy and Marubeni are expected to begin negotiations with banks to finance the two powerplants, once the land has been allocated. An investment of $596m will be required and it’s believed that Japanese banks will invest into the renewable energy projects.
The price of energy produced from the two wind farms is expected to remain below 3.8 cents per KW, which is the value contracted by the Egyptian Electricity Holding Company in partnership with GD France, Orascom and Toyota.
Elsewedy was previously planning to develop six 100MW wind stations to produce power from within the Red Sea Governate, however that project has since been shelved.