February 14 (Renewables Now) - Lekela Power 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, Egypt.
After signing the deal, Lekela, a 60/40 joint venture between private equity firm Actis and a consortium led by Ireland-based wind and solar developer Mainstream Renewable Power, aims to achieve financial close on the USD-325-million (EUR 288.4m) project and start building activities later this year. The wind farm will be installed near Ras Ghareb and is slated for commissioning in 2021, Lekela said 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 local homes. To be installed under the Egyptian government’s build-own-operate (BOO) programme, it will lift the country’s installed wind power capacity by 14% and support it in reaching its 20% renewables goal by 2020.
Financing for the project will be provided by “leading development finance Institutions,” Lekela said. The company has requested long-term senior debt financing of up to USD 81.4 million from the European Bank for Reconstruction and Development (EBRD) and other parties.
(USD 1.0 = EUR 0.887)