The government of the Arab Republic of Egypt through the state-owned New and Renewable Energy Authority (NREA) has awarded a contract for the construction of a new 250 MW wind farm in the Gulf of Suez located to the north-east region of the North African country.
The contract was awarded to Vestas Wind Systems A/S, a Danish manufacturer, seller, installer, and service provider for wind turbine systems after the project’s terms had been agreed upon and reviewed by Egypt’s state council.
Two other companies i.e. Siemens Gamesa Renewable Energy S.A., a Spanish-German wind engineering company based in Spain, and Senvion Gmbh, a German wind turbine manufacturer based in Germany, had submitted tenders for the 250 MW wind farm in the Gulf of Suez project.
Allegedly, Siemens Gamesa formerly Gamesa Corporación Tecnológica S.A. and Grupo Auxiliar Metalúrgico S.A., unlike Vestas failed to extend the validity of its bid for the tender, and as a result, it was excluded from further consideration while on the other hand, Senvion withdrew due to technical reasons.
Financing for the project
The implementation of the entire project is estimated to cost approximately 228 million euros. The wind energy giant has already received assurances of funding from several financial institutions, including the French Development Agency (AFD), the European Investment Bank (EIB), and the German development agency Kreditanstalt für Wiederaufbau (KfW).
The construction works for the project is expected to take about 2 years to complete, upon which the electricity generated by the future wind farm will be sold to the Egyptian Electricity Transmission Company (EETC).