Egypt to construct the second biggest wind farm in the world

The $10 billion investment will reduce the country's annual carbon emissions by about 9%

Hello… Egypt is facing an energy crisis due limited natural gas and rising electricity demand, leading to extended power cuts.

The government blames unusually high temperatures for the increased demand. Traditionally, Egypt's energy comes from oil, natural gas, and hydroelectric power from Nile dams.

However, Egypt is hopeful as it embarks on ambitious renewable energy projects, focusing on wind and solar power. Unlike natural gas and water from the Nile, these are abundant resources that could solve the energy crisis.

⏳ Today’s reading time: 3 mins

LOGISTICS UPDATE | Tuesday 2nd July

📅  Event: Uganda hosts National Solar Energy Expo (July 25)

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1. Egypt is turning to the desert for its energy needs

Egypt plans to build a $10 billion, 10-gigawatt wind farm by 2026, set to be one of the world's largest and completed by 2032.Currently, the world's largest wind farm is Gansu Wind Farm in China, with over 10,000 MW capacity, targeting 20,000 MW In Africa, the largest wind farm is Lake Turkana Wind Power in Kenya, with a capacity of 310 MW.

Why this is important: Egypt  is grappling with power outages due to high temperatures and rising electricity demand from its population of over 105 million. Read more

2. Solar: Construction of South Africa’s 1GW solar plant begins

SolarAfrica Energy has started construction on the first phase of its SunCentral solar park in South Africa's Northern Cape province. This initial phase will have a capacity of about 342 MW and will cost approximately $272m. The project is a public-private partnership with Eskom and is part of South Africa’s REIPPPP initiative to boost clean energy. South Africa aims for a net zero energy system by 2050 and this solar park is crucial in addressing current power shortages and reducing reliance on coal. Read more

3. Geothermal: Insurance boost for Kenya’s major green project

ATIDI has underwritten a USD 117 million political risk insurance for Globeleq's 35 MW Menengai Geothermal power project in Kenya. This support is provided via the Regional Liquidity Support Facility (RLSF), a collaboration between ATIDI, KfW Development Bank, and Norad. It protects against payment defaults by Kenya Power & Lighting Company (KPLC) and Geothermal Development Corporation (GDC). The project is financed by African Development Bank, Eastern and Southern African Development Bank, Finnfund, and Globeleq. Kenya aims to reach 100% clean energy by 2030, with geothermal projects like Menengai playing a key role. Read more

4. Wind: Vestas wins major South Africa’s wind farm contract

Vestas has secured a 144MW wind turbine order from African Clean Energy Developments (ACED) for the Umsinde Emoyeni wind farm in Western Cape, South Africa. Vestas will supply and install 32 V163-4.5 MW wind turbines. The delivery is expected in the first half of 2025 and commissioning in the first half of 2026. This order continues the long-standing relationship between Vestas and ACED, which dates back to the beginning of South Africa’s wind energy industry in 2011. The project aims to serve offtaker Sibanye Stillwater, shareholders, and local communities while ensuring optimized turbine performance. Read more

5. Today’s Number

… is the target number of new grid and off-grid direct connections that Empower West Africa (EWA) aims to establish by 2029. This goal is part of USAID's $73 million Power Africa initiative, which also includes infrastructure development, energy generation, and emission reduction targets.

6. Mega project: A plan for 4GW renewable energy in Cameroon

Infinity Power Company Ltd, a partnership between Egypt's Infinity and UAE's Masdar, has signed an agreement to increase Cameroon's renewable energy capacity to 4GW by 2035. The current power supply in Western Cameroon is only 100MW for over two million people. The project will use solar, wind, batteries, hydro, and biomass technologies to boost energy provision in the region. This initiative aligns with Infinity Power's goal of promoting sustainable development and reducing reliance on fossil fuels. The project aims to enhance socio-economic growth by providing stable, clean energy and creating job opportunities.

7. Africa50 and Irena sign a $100m partnership for renewable energies

Africa50, an infrastructure investment platform, has committed $100 million to finance renewable energy projects across Africa.This will be achieved through the IRENA's Energy Transition Accelerator Financing (ETAF) platform.A partnership agreement was signed by Africa50 and IRENA at the OPEC Fund for International Development (OFID) Development Forum in Vienna. Read more

8. Spark Insight:

Oluwole Eweje - CEO and founder of Watt Renewable

9. Picture of the Day 

Ayo Ademilua, Vice President of Africa Minigrid Developers Association poses for a photo during the solar event in Munich last week.

10. Media Monitoring

  • Networking: The Africa Minigrid Developers Association (AMDA) participated in the Energy Crisis Indaba in Lusaka, Zambia. AMDA emphasized the importance of government policies and collaborative efforts to advance off-grid energy solutions and ensure equitable access.

  • Electrification: ACWA Power's 200MW Kom Ombo solar plant in Egypt has received commercial operation certification. The project, which will supply power to 130,000 households and offset 280,000 tonnes of CO2 annually, secured $123 million in financing from multiple international organizations.