History
The project development started in 2017 as a follow-up on the RGWE 262.5 MW wind farm project in the same area developed by the same sponsor Consortium. The Egyptian Cabinet of Ministers approved on April 11th 2018 the RSWE 500 MW wind farm project under the “build, own, operate” (BOO) scheme. Subsequently on December 20th 2018 EETC and the consortium formed by ENGIE, Toyota Tsusho, Eurus Energy and Orascom Construction entered into a Joint Development Agreement.
The project is expected to achieve financial close and start construction in the fourth quarter of 2020. The project is scheduled to reach commercial operation after 29 months of construction.
Stakeholders
Red Sea Wind Energy S.A.E. is a joint venture of ENGIE from France (35%), Toyota Tsusho Corporation & Eurus Energy Holdings Corporation, both from Japan (holding collectively 40%) and Orascom Construction from Egypt (25%).
The project is expected to be financed by the Japan Bank for International Cooperation (JBIC), the European Bank for Construction and Development (EBRD), and Société Générale, Sumitomo Mitsui Banking Corporation and Norinchukin Bank under a commercial and political risk cover from Nippon Export and Investment Insurance (NEXI). A local working facility will be provided by HSBC.
Between many more project stakeholders it is worth to mention: Tractebel (Owner's Engineer during development), ECO Consult and EcoConServ (ESIA advisor) and DNV/GL (Lenders’ Technical Advisor).
Red Sea Wind Energy SAE
Red Sea Wind Energy S.A.E. will enter into a 20-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC). The site is granted to the project through a Usufruct Agreement with the New and Renewable Energy Authority (NREA). The project benefits from a Governmental Guarantee provided by the Ministry of Finance.
Contractors
The project will be built under the EPC-M model (Engineering, Procurement, Construction and Management) comprising two main packages.
The wind turbines will be supplied by Siemens Gamesa Renewable Energy (SGRE). There will be 173 turbines type SG 2.9 114 IEC Class S, rated 2.9 MW with a hub height of 63 m.
The civil works and electrical systems will be provided by Orascom Construction. This package includes (i) the turbine foundations, (ii) the site buildings and control room, (iii) the site roads, (iv) a network of 33kV cabling collecting the energy generated by the wind turbines, and (v) an on-site substation with step-up transformers to enable connection with the regional power transmission grid through a 220kV overhead transmission line of around 30 km developed by EETC.
Service Agreement