Alcazar Energy closes financing for two Red Sea wind farms

Overview

Updated 1 hour ago

Alcazar Energy Partners closed $436 million in debt on Nov. 9 for two wind farms on Egypt's Red Sea coast, moving the $626 million Niat and Rasgha projects into construction. The farms will have 500 megawatts of capacity and 100 Siemens Gamesa turbines, with commercial operation targeted for the end of 2028.

The financing matters because Egypt's grid has struggled with shortages and the country wants 42% of its electricity from renewables by 2030. The deal also shows the template: a 25-year power purchase agreement with the state transmission company, three European development lenders, and a European Union guarantee that absorbs first losses.

Why it matters

Egypt's power shortages are real. This deal tests whether private wind farms backed by European guarantees can deliver before 2030.

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Key Indicators

$436M

Debt financing

Loans from the EBRD, EIB and DEG for the two wind farms.

$626M

Total project cost

Combined debt and equity for Niat and Rasgha.

500 MW

Combined capacity

Two 250-megawatt wind farms on the Gulf of Suez.

100

Wind turbines

Siemens Gamesa turbines rated at 5 megawatts each.

2.3 TWh

Expected annual generation

Forecast output once both farms operate.

1.1M tonnes

CO2 avoided annually

Alcazar's forecast reduction in CO2-equivalent emissions.

42%

Egypt's 2030 renewable target

Share of electricity generation from renewables under Egypt's 2035 energy strategy.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Daniel Calderon

Co-founder and managing partner, Alcazar Energy Partners

Leading Alcazar's Egyptian wind investments

Organizations Involved

Alcazar Energy Partners

Renewable energy investment fund manager

Developer and owner of the Niat and Rasgha wind farms

Dubai-based fund manager that invests in utility-scale renewable energy in growth markets.

European Bank for Reconstruction and Development

Multilateral development bank

Lender providing up to $145 million

Development bank that lends to private projects across emerging markets, including Egypt's power sector.

European Investment Bank (EIB)

Multilateral development bank

Lender providing about $152 million

The EU's long-term lending arm, financing infrastructure and climate projects inside and outside Europe.

Deutsche Investitions- und Entwicklungsgesellschaft

German development finance institution

Third lender in the debt package

German development finance institution and KfW subsidiary that invests in private-sector projects in emerging markets.

Siemens Gamesa

Turbine Manufacturer

Turbine supplier and maintenance contractor

Wind turbine maker that will supply 100 units and maintain them after construction.

Orascom Construction

Engineering and construction contractor

Balance-of-plant contractor

Egyptian construction group handling the civil and electrical works around the turbines.

Egyptian Electricity Transmission Company

State-owned transmission utility

Offtaker under 25-year power purchase agreements

State company that operates Egypt's transmission grid and buys power from private generators.

Timeline

May 2026 December 2028

6 events Latest: Today

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December 2028
Targeted commercial operation
Upcoming Construction

Both wind farms are expected to start selling power to the grid by the end of 2028.
December 2028
November 2026
Financial close reached for Niat and Rasgha
Today Financing

Alcazar closes $436 million in debt for the $626 million, 500-megawatt wind projects and issues notice to proceed to Siemens Gamesa.
Today
September 2026
EIB signs loan tranches
Financing

The EIB signs four tranches totaling about €126.7 million for the projects.
September 17th, 2026
July 2026
EIB board approves wind financing
Financing

The EIB approves its participation in the Niat and Rasgha debt package.
July 15th, 2026
Gabal El Zeit privatisation signed
Deal

Alcazar signs $420 million agreements to take over the state-owned Gabal El Zeit wind farm.
July 2026
May 2026
EIB publishes project summary
Financing

The European Investment Bank releases details of a proposed $152 million loan for the two wind farms.
May 5th, 2026

Scenarios

Both wind farms enter commercial operation by end-2028

Likely Resolves by Q1 2029

Discussed by: Alcazar Energy Partners and EBRD project documents

Alcazar, Siemens Gamesa and Orascom Construction have notice to proceed and a 2028 target. If turbine deliveries and grid connections hold, both farms would begin selling power to EETC under 25-year contracts before 2029, adding about 2.3 terawatt-hours of annual supply.

Construction slips into 2029 as grid connections lag

Possible Resolves by Q2 2030

Discussed by: EIB project summary and EBRD project documents

Egypt's grid connection approvals and foreign-currency arrangements have slowed past renewable projects. A delay in either area would push commercial operation past the 2028 target and postpone the expected emissions reductions and power supply.

Gabal El Zeit privatisation reaches financial close

Uncertain Resolves by End of 2027

Discussed by: Alcazar Energy Partners statements

Alcazar signed a $420 million agreement in July 2026 to take over the state-owned Gabal El Zeit wind farm. The next test is closing project finance for that transaction, which the company says is progressing separately from Niat and Rasgha.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2015-2019

Benban Solar Park (2019)

Egypt built the Benban Solar Park near Aswan, a complex of more than 30 privately financed solar plants with roughly 1.6 gigawatts of capacity. The EBRD and other development banks backed the multibillion-dollar build-out, which used long-term power contracts similar to the ones now supporting Niat and Rasgha.

Then

Benban added solar capacity at scale and established Egypt as a market for private renewable project finance.

Now

Development banks kept using the same model for later Egyptian renewable projects, though grid and currency problems slowed some developers.

Why this matters now

Niat and Rasgha apply the Benban playbook to wind: development banks lend, private developers build, and the state utility signs long-term contracts.

2000-2010

Zafarana Wind Farm (2000-2010)

Egypt built the Zafarana wind farm on the Gulf of Suez in phases, reaching roughly 545 megawatts with financing from Denmark, Germany, Japan and Spain. It was one of Africa's largest wind complexes and proved the Red Sea wind resource.

Then

The farm supplied the grid for years but depended heavily on donor grants and public funding.

Now

It anchored Egypt's wind industry and established the Gulf of Suez corridor as the country's main wind zone.

Why this matters now

Niat and Rasgha sit in the same corridor but replace grants with private debt and equity.

2011-present

South Africa's REIPPPP (2011)

South Africa launched its Renewable Energy Independent Power Producer Procurement programme in 2011, auctioning long-term power contracts to private wind and solar developers. The programme brought gigawatts online and became a reference for renewable procurement in Africa.

Then

Private developers built wind and solar farms under long-term contracts with the state utility Eskom.

Now

Stable auctions attracted private capital, though Eskom's grid and financial troubles later slowed new connections.

Why this matters now

Egypt is using bilateral deals rather than competitive auctions, which may be faster but gives the state less price discovery.