EBRD, EU back development of two 500MW wind farms in Egypt

CAIRO, November 10, 2026 – The European Bank for Reconstruction and Development [EBRD] and the European Union [EU] are supporting the development of two wind farms in Egypt with a combined generation capacity of 500 megawatts [MW], in a move aimed at strengthening the country’s energy security and expanding renewable energy production.

The EBRD is providing financing of up to US$ 145 million [€129.5mln] towards the development, construction and operation of the two projects, which are expected to reduce annual greenhouse gas emissions by approximately 979,700 tonnes of carbon dioxide equivalent.

The financing package comprises two loans of up to US$ 75mln [€67mln] and US$ 70mln [€62.5mln] to Niat for Wind Energy and Alcazar Rasgha Energy, respectively. Both companies are special-purpose vehicles owned by Alcazar Energy Partners II, a clean energy investment fund.

The projects are also being co-financed by the European Investment Bank [EIB] and Germany’s development finance institution, Deutsche Investitions- und Entwicklungsgesellschaft [DEG].

The wind farms form part of Egypt’s efforts to address energy shortages, reduce reliance on imported fossil fuels and accelerate the transition to renewable energy.

The projects are expected to attract further private-sector investment in renewable energy generation and contribute to building a more resilient electricity sector.

The financing will benefit from first-loss risk cover provided by the EU under the European Fund for Sustainable Development Plus [EFSD+] HI-BAR programme.

The projects will also contribute to the implementation of the EU-Egypt Strategic and Comprehensive Partnership, which identifies renewable energy, energy security and sustainable investment as key areas of cooperation.

They will further support the objectives of the Pact for the Mediterranean, particularly its Trans-Mediterranean Renewable Energy and Clean-Tech Cooperation Initiative [T-MED], which seeks to mobilise investment in clean energy, strengthen competitiveness and create economic opportunities across the Mediterranean region.

A representative of the EBRD’s Sustainable Infrastructure Group said the investment would help improve Egypt’s energy security, attract private capital and support long-term renewable energy development.

“Reliable and affordable energy is essential for economic growth and competitiveness,” the representative said.

The official added that the agreement demonstrated the importance of cooperation between development finance institutions and the EU in mobilising large-scale investment.

EU Ambassador to Egypt Angelina Eichhorst said the partnership would deliver additional wind power capacity while supporting a more secure and sustainable energy future.

“Through the EU guarantee, and through T-MED, our flagship initiative for clean energy across the Mediterranean, we are turning that shared horizon into something tangible: 500 MW of new wind capacity, cleaner skies and a more secure energy future for Egypt,” Eichhorst said.

The agreement will also diversify Egypt’s renewable energy supply chain through the return of Siemens Gamesa Renewable Energy to the Egyptian market as a wind turbine supplier and operations and maintenance contractor.

The involvement of additional suppliers and contractors is expected to increase competition and strengthen the resilience of the country’s renewable energy sector.

The EBRD is a major institutional investor in Egypt, having invested more than €16 billion in 238 projects in the country to date, with the majority of its investments directed towards the private sector.

https://thecooperator.news/ebrd-supports-egypts-energy-security-with-us-63mln-financing/

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