Lekela, a joint venture (JV) between developer Mainstream Renewable Power and investment firm Actis, also initialled a power purchase agreement (PPA) with the state-owned Egyptian Electricity Transmission Company (EETC), it announced
The JV will construct the 250MW site in northeast Egypt within a build, own and operate (BOO) framework.
In November 2015, it signed a memorandum of understanding (MoU) with the EETC to build the project.
The location of the project, approximately 30km northwest of Ras Ghareb, has a strong wind resource, which should deliver high capacity factors and enable the competitive sale of power, the company stated.
Environmental and technical studies have been carried out for the project, Lekela added. Financial close and the start of construction are expected to take place next year.
"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," said Lekela CEO, Chris Antonopoulos.
"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," he added.
The Lekela JV was launched in February 2015 with the aim of developing up to 900MW of wind and solar projects in Africa by 2018.
Mainstream holds a 40% stake, with Actis owning the remaining 60%.
Its current portfolio includes more than 1.3GW of projects in Egypt, Ghana, Senegal and South Africa, the company stated.
Two 140MW South African wind farms owned by a Lekela-led consortium were completed this month.