signing of an agreement with ACWA Power to develop a 1.1 GW wind project

signing of an agreement with ACWA Power to develop a 1.1 GW wind project

(Ecofin Agency) – In Egypt, several agreements for clean energy projects have been signed recently. The country continues in this direction by attracting international investors and those from the sub-region.

Saudi independent power producer ACWA Power on Tuesday (June 21st) signed an agreement with Egyptian authorities to develop a 1.1 GW wind project. The project will require investment needs of $1.5 billion.

ACWA Power will form a consortium with Hassan Allam Holding and the two companies will work together to complete the project implementation studies and mobilize financing for the development phase. The project, which is planned to be erected in the Gulf of Suez and Gabal el Zeit region, will, once in operation, be the largest wind farm in the Middle East region. It will also be one of the largest onshore wind farms in the world.

The project is expected to reduce Egypt’s carbon dioxide emissions by 2.4 million tons per year and will provide electricity to 1,080,000 households.

“This wind project is part of the Egyptian government’s strategy to diversify its energy sources and take advantage of the country’s rich natural resources, particularly in renewable energy”said Dr. Mohamed Shaker El-Markabi, Egypt’s Minister of Electricity and Renewable Energy.

This new contract strengthens ACWA Power’s footprint in the development of renewable energies in Egypt. Already in October 2018, the Saudi company had reached an agreement with the Egyptian Electricity Transmission Company (EETC) for the purchase of the electricity produced by its future 500 MW wind power plant. At the end of April 2021, ACWA Power also received $113.6 million in funding for its Kom Ombo solar power plant.

“We are honored to help strengthen ties between Saudi Arabia and Egypt through this landmark wind project. We express our deepest gratitude to the leaders of both countries for placing their faith in our abilities to deliver on their renewable energy mandates.”said Mohammad Abunayyan, Chairman of ACWA Power.

For the Egyptian authorities, this agreement with ACWA Power joins many other agreements signed in the field of green energies, in recent months, in particular agreements relating to the development of hydrogen. Egypt is due to host the next international climate conference in November 2022, and the country intends to accelerate its energy transition by developing its potential for renewable energy production.

Abdullah Diop

Read also:

27/04/2021 – Egypt: Acwa Power obtains more than $113 million for the Kom Ombo solar power plant (200 MW)


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