Published on 29 Jun 2025

Largest wind farm in Africa begins operations

Amunet Wind Power Plant in Egypt launched with Japanese support

The Amunet Wind Power Plant. Photo source: AMEA Power

Africa’s largest wind power plant has begun operations in Egypt, with Japanese companies and financial institutions playing a central role in the project’s development and funding.

The 500MW Amunet Wind Power Plant, located in Ras Ghareb on the Gulf of Suez, is a joint venture between UAE-based AMEA Power, which holds a 60% equity stake, and Japanese general trading business Sumitomo, with 40% shareholding. The facility, which has the capacity to supply electricity to more than 500,000 households, operates under a 25-year power purchase agreement with the Egyptian Electricity Transmission Company.

The project has received significant financial support from Japanese lenders. The Japan Bank for International Cooperation, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank provided debt financing, alongside the International Finance Corporation and Standard Chartered Bank. The total financing package from these institutions amounted to US$518m. Japan’s export credit agency, Nippon Export and Investment Insurance, provided insurance cover.

The Amunet plant adds to a growing portfolio of Japanese-backed renewable energy ventures in Egypt. In late 2024, AMEA Power completed the 500MW Abydos solar power facility in the south of the country, a project co-financed by the Japan International Cooperation Agency. Japanese trading house Toyota Tsusho Corporation is also involved in constructing the 654MW Gulf of Suez Wind Farm II, with Japanese lenders including JBIC, Sumitomo Mitsui Banking Corporation and Norinchukin Bank providing financing.

These projects come as Egypt faces mounting pressure to meet electricity demand, driven by rising summer temperatures and a population that has grown to over 118m. The strain on the system has been compounded by a sharp decline in natural gas production – the source of more than 70% of the country’s electricity. Egypt’s gas output fell from 4.6bn cubic metres in January 2024 to 3.3bn cubic metres in February 2025, the lowest level since April 2016.

Efforts to secure additional gas have also been constrained by a shortage of foreign exchange, limiting Egypt’s ability to import supplies. More recently, the country has faced a further setback with reduced gas inflows from Israel – which typically accounts for 40% to 60% of Egypt’s imported supply – after major Israeli offshore fields suspended operations following military strikes against Iran.

The Amunet plant marks a major step in Egypt’s clean energy transition and Africa’s broader energy shift. With natural gas still supplying over 70% of electricity and facing supply and cost pressures, Egypt is accelerating plans to diversify its power mix. By 2030 it aims at increasing the contribution of renewables in its energy mix to 42%. Non-hydropower renewables is expected to be the fastest-growing segment in the market, with solar power at an annual average rate of 17.2% and projected to reach 9.7GW by 2033.

According to BMI's Q3 2025 Egypt Power & Renewables Report, the country aims for 42% renewables by 2030 and 58% by 2040, backed by strong investment in solar, wind, nuclear, and battery storage. Over 17.7GW of non-hydro renewables are expected by 2034, led by solar and onshore wind, while gas is projected to fall to 69% of electricity generation.

The sector is gradually opening to private investment, and Japan is emerging as a key partner through financing and development of landmark projects like Amunet. Still, Egypt’s energy future depends on market reforms, infrastructure upgrades, and economic stability.

References

'Project financing for onshore wind farm project in Egypt', Japan Bank for International Cooperation, 01 December 2022

'Electricity and energy crisis in Egypt…ways to confront', Draya Egypt, 20 July 2024

'Egypt reaffirms 42% renewable energy goal for 2030, but urges international help', CNBC Africa, 12 November 2024

'Toyota Tsusho to expand wind power plant under construction in Egypt by 150 MW - to build Africa's largest 654 MW wind power facility', Toyota Tsusho Corporation, 19 November 2024

'Project financing for onshore wind farm expansion project in Egypt', Japan Bank for International Cooperation, 19 November 2024

'AMEA Power commissions landmark 500MW solar PV plant in Egypt', AMEA Power, 14 December 2024

‘Egypt secures 10-year floating LNG terminal deal with Hoegh Evi’, Reuters, 12 May 2025

'AMEA Power commissions Africa’s largest wind power plant – a 500MW landmark in Egypt', AMEA Power, 02 June 2025

'Egypt rushes to catch up on solar energy as gas prices soar', Reuters, 13 January 2025

'Egypt halts fertilizer production as Israeli gas disruptions deepen energy strain', Reuters, 16 June 2025

'Amunet Wind Power plant, Egypt's largest, begins commercial operations ahead of schedule', Sumitomo Corporation, 19 June 2025