Lekela, the renewable power generation company that delivers utility-scale projects across Africa, today announced the initialling of key project documents including a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) and Egypt’s Minister of Energy. The initialling of these documents is a major milestone in Lekela’s development of a 250MW wind farm in the Gulf of Suez.
The project forms part of the Egyptian Government’s Build, Own, Operate (BOO) framework, and is situated approximately 30km North-West of Ras Ghareb. The location benefits from a strong wind resource which will deliver high capacity factors and allow the wind farm to sell competitively priced power to its customer, EETC.
Demand for electricity in Egypt is growing at 6% per year and is predicted to continue to grow at this rate for the next decade. Currently, 86% of Egyptian power generation is from gas-fired power plants and there is therefore an incentive for Egypt to draw on its diverse natural resources and move towards more renewable generation.
Extensive environmental and technical studies have already been carried out on the site, generating positive results. The next stage of the project, financial close followed by the commencement of construction, is expected to take place in 2018.
Chris Antonopoulos, Chief Executive Officer of Lekela, said: “The initialling of the PPA marks an important step for Lekela and its partners. This is part of our long-term strategic plan to deliver renewable energy to Egypt and support the diversification of its generation capacity at a highly competitive price.
Our progress in Egypt mirrors our development efforts across the African market. Generating clean, renewable and competitively priced power continues to be a priority in many countries across the continent and we are looking forward to further announcements in South Africa, Ghana and Senegal in due course.”
Lekela is a renewable power generation company that delivers utility-scale projects which supply much-needed clean energy to communities across Africa.
Through a platform built to develop, own and operate wind and solar assets, Lekela draws from its team members extensive experience, and from its founder shareholders decades of proven energy heritage. Lekela has the skills and drive to progress projects from mid or late-stage development into long-term operation. As a result, Lekela delivers sustainable, reliable and competitively-priced power to governments, utilities and large-scale industrial projects.
Lekela's current portfolio includes more than 1,300 megawatts across projects in Egypt, Ghana, Senegal and South Africa.
Lekela is majority-owned by shareholders, 60% owned by Actis, the leading growth markets energy investor, and 40% by a consortium led by Mainstream Renewable Power which includes investors such as the IFC and the Rockefeller Brothers Fund.