Seven JBIC “Global South” Projects
Investment in renewable energy is underway in the Global South. With a project that took into account seasonal wind patterns, volume, and direction, JBIC provided ongoing support for onshore wind farms in Egypt. OGAWA Riki, who was in charge of this project, explains.
Suitable sites for onshore wind power are limited to open fields, but it has advantages over offshore wind power in terms of cost, construction, and maintenance.
Egypt’s renewable energy push aligns with Japan’s supportive policies
Ongoing investment in renewable energy to address climate change is happening in Africa, a significant pillar of the Global South. In March 2023, JBIC signed a project financing loan agreement for an onshore wind farm with Egyptian company Red Sea, whose investors include Japanese companies such as Toyota Tsusho Corporation and Eurus Energy Holdings Corporation.
Conditions are crucial for wind power generation, namely volume and direction. Offshore wind power has been driving the market in recent years, but as onshore turbines become larger, there is still room for more development if sites with good wind conditions can be secured. Building on the success of the first project, for which a loan agreement was signed in 2017, electricity generation capacity was increased for the second project in 2023.
“The area where the wind farm will be located is subject to seasonal wind patterns, with conditions worsening in winter compared to summer,” explains OGAWA Riki of JBIC’s Infrastructure and Environment Finance Group. “We put together a repayment plan that takes this into account so that the project can proceed smoothly.”
The Egyptian government aims to increase the share of renewable energy sources in the electricity mix to 35 percent by 2030, and to 42 percent by 2035. This project is expected to contribute to Egypt’s shift to renewable energy from its heavy reliance on thermal power generation. It is also aligned with the country’s energy policy and the Japanese government’s initiatives to support the transition to carbon neutrality.
Division 2 (EMEA & Americas)
New Energy and Power Finance Department I
Infrastructure and Environment Finance Group
OGAWA Riki
Joined the bank in 2021. His work includes project structuring of renewable energy IPP projects in Europe, the Middle East, and Africa. Graduated from UC Davis College of Engineering.
