Acwa Power-led consortium to develop $1.5bn wind project in Egypt

The 1.1-gigawatt project is one of the largest onshore wind farms in the world and the largest in the Middle East

Senior officials from Saudi Arabia and Egypt during the signing of the new 1.1-gigawatt wind project. Photo: Acwa Power

A consortium led by Saudi Arabia's Acwa Power will develop a 1.1-gigawatt wind project in Egypt at an investment of $1.5 billion.

The consortium, comprising Egypt-based Hassan Allam Holding, will work together during the development phase of the project to complete the site studies and secure financing, the Riyadh-based utility developer on Tuesday.

Located in the Gulf of Suez and Gabal el Zeit area, the wind project will be the largest in the Middle East and one of the largest onshore wind farms in the world, it said.

The project will use modern wind turbines with blade heights of up to 220 metres, which will help to achieve the best use of the designated land plots in the most efficient way.

The plant is expected to reach financial close by the third quarter of 2024, and will be commercially operational by the end of 2026.

This wind project falls within the framework of the Egyptian government’s strategy to diversify its energy sources and leverage the country’s rich natural resources, especially in renewable energy, Mohamed Shaker El Markabi, Egypt’s Minister of Electricity and Renewable Energy, said.

The Egyptian ministry is acting to ensure the resilience of energy strategy, which aims to increase the contribution of renewable energy to up to 42 per cent by 2035.

This project is an example of the Egyptian government’s efforts to increase the participation of the private sector in implementing green energy projects in the North African country as well as attracting investments from international, Arab and local companies into the country, Mr El Markabi said.

The project aims to mitigate the impact of 2.4 million tonnes of carbon dioxide emissions per year and provide electricity to 1,080,000 households.

Egypt is also preparing to host the UN Climate Conference Cop27 in November, a global forum to discuss countries’ efforts in addressing climate change.

“We are honoured to contribute to the strengthening ties of Saudi Arabia, our home, and Egypt via this milestone wind project, and extend our sincerest gratitude to the leaders of both countries in entrusting their faith in our abilities to realise their renewable energy mandates,” said Mohammad Abunayyan, chairman of Acwa Power.

“This wind project demonstrates a commitment to realising a greener tomorrow, despite global economic volatility … we look forward to working with like-minded partners for a positive future,” Mr Abunayyan said.

This is Acwa Power’s third project, and first wind farm, in Egypt, after the 120-megawatt Ben Ban solar independent power projects in the Aswan region and the 200MW Kom Ombo solar plant.

“The project marks an important milestone in Egypt's plans to decarbonise the energy sector and meet its targets under the country’s Intended Nationally Determined Contributions. We are proud to be part of this flagship project and look forward to a fruitful partnership,” said Dalia Wahba, deputy chief executive and chief investment officer of Hassan Allam Utilities.

Hassan Allam Utilities, the investment and development arm for Hassan Allam Holding, currently operates a 50MW solar plant, cementing its position as one of Egypt's leading green energy producers.