RIYADH: Saudi Arabia’s ACWA Power has invested $1.5 billion in a wind power plant in Egypt as the company expands its horizons in renewable energy.
The 25-year agreement was signed with the Egyptian Electricity Transmission Co, the PIF-owned utility said in a bourse filing.
The deal will see ACWA Power develop, build, and operate the 1,100-megawatt wind farm, located in the Gulf of Suez in Egypt.
The ACWA Power-led consortium also comprises Hassan Allam Holding, and they will work together during the development phase to complete the site studies and secure financing for the facility.
Touted to be the largest single contracted wind farm in the Middle East region and one of the largest onshore wind farms in the world, this power plant is located in the Gulf of Suez and Gabal El Zeit area.
According to a joint statement from ACWA Power and Hassan Allam Holding, the new power plant will use wind blades that reach a height of up to 220 meters, which will help to reap energy and the available land in the most efficient manner.
The statement further noted that this project will also mitigate the impact of 2.4 million tons of carbon dioxide emissions per year and provide electricity to 1,080,000 households.
“This wind project demonstrates a commitment to realizing a greener tomorrow, despite global economic volatility, and we look forward to working with like-minded partners for a positive future,” said Mohammad Abunayyan, chairman of ACWA Power.
ACWA Power expects the project to start commercial operations by the fourth quarter of 2025.
“The Ministry of Electricity and Renewable Energy is taking concrete actions to ensure the resilience of our energy strategy, because of the escalating changes that the world is witnessing, which aim to increase the contribution of renewable energy to up to 42 percent by 2035,” said Mohamed Shaker El-Markabi, Egypt’s minister of electricity and renewable energy.
According to a statement from Egypt’s Cabinet, the Saudi-listed company has also signed deals involving petroleum products, food and fintech.
The statement added that ACWA Power has also signed another deal for the development of a multipurpose terminal at Egypt’s Damietta port.
Meanwhile, Saudi Arabia and Egypt signed 14 investment deals worth $7.7 billion, Saudi Minister of Trade Majid Al-Qasabi announced.
Al-Qasabi also added that the total investments of Saudi Arabia in Egypt is $30 billion, while 574 Egyptian companies are operating in the Kingdom with a capital of $1.3 billion.
