ACWA Power has signed an agreement to develop a 1.1GW wind project in Egypt, at an investment value of US$1.5 billion.
The ACWA Power-led consortium, comprising ACWA and Hassan Allam Holding, will work together during the development phase to complete the site studies and secure the financing of this facility. Located in the Gulf of Suez and Gabal el Zeit area, this wind project is the largest single contracted wind farm in the Middle East region and will be one of the largest onshore wind farms in the world. It will be designed to use wind turbines with blade heights of up to 220 m, the aim being to make best use of the designated land plots in the most efficient way.
Dr Mohamed Shaker El-Markabi, Egypt’s minister of Electricity and Renewable Energy, commented: “This milestone 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. 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% by 2035.”
Dalia Wahba, deputy CEO and chief investment officer of Hassan Allam Utilities, said: “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 (INDCs).”
The new wind project is expected to reach financial close by the third quarter of 2024, and be commercially operational by the end of 2026. This is ACWA Power’s third project – and first wind farm – in Egypt, after the 120 MW Ben Ban solar independent power projects in the Aswan region and the 200 MW Kom Ombo solar plant.