ACWA Power has inked a project agreement to develop a 1.1 GW wind project in Egypt at an investment value of US$1.5 billion.
The signing ceremony of the agreement took place at the headquarters of the Egyptian General Authority for Investment and Free Zones, Cairo, Egypt, in the presence of Dr. Mohamed Shaker El-Markabi, Egypt’s Ministry of Electricity and Renewable Energy; His Excellency Dr. Majid Bin Abdullah Alkassabi, Saudi’s Minister of Commerce; His Excellency Dr. Issam bin Saad bin Saeed, Minister of State and Cabinet Member for Shoura Council affairs; HE Dr. Hala Al Said, Egypt’s Minister of Planning and Economic Development; Counselor Mohamed Abdel Wahab, CEO of the General Authority for Investment and Free Zones ‘GAFI’; Eng. Osama Asran, Egypt’s Deputy Minister of Electricity and Renewable Energy; Eng. Gaber Desouky, CEO of the Egyptian Electricity Holding Company (EEHC); Dr. Amjad Saeed, Advisor to the Minister; Eng. Sabah Mashali, Chairman of the Egyptian Electricity Transmission Company; Dr. Mohammed El Khayat, Chairman of New and Renewable Energy Authority; and His Excellency Mohammad Abunayyan, Chairman of ACWA Power.
The ACWA Power-led consortium, comprising Hassan Allam Holding, will work together during the development phase to complete the site studies and secure the financing of the facility. Located in the Gulf of Suez and Gabal el Zeit area, the wind project is the largest single contracted wind farm in the Middle East region and one of the largest onshore wind farms in the world. The project will be designed to use wind turbines with blade heights of up to 220 m, which helps in achieving the best use of the designated land plots in the most efficient way.
When complete, the project will mitigate the impact of 2.4 million tpy of CO2 emissions and provide electricity to 1 080 000 households.
“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,” said Dr. Mohamed Shaker El-Markabi, Egypt’s Ministry of Electricity and Renewable Energy.
His Excellency added that the 1.1 GW wind project confirms Egypt’s commitment in spearheading the use of renewable energy sources to reduce the impact of carbon emissions produced by conventional energy sources, as Egypt gears up to host the UN Climate Conference (COP27) in November 2022, the foremost international forum to discuss countries’ efforts in addressing climate change.
His Excellency affirmed that this project is a leading example of the Egyptian government’s efforts to increase the participation of the private sector in implementing green energy projects in Egypt as well as attracting investments from international, Arab, and local companies into the country.
Mohammad Abunayyan, ACWA Power Chairman, said: “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.”
“With sustainable development at the top of the agenda for both states, progress cannot be made without concerted efforts in expanding infrastructure that is underpinned by renewables. This wind project demonstrates a commitment to realising a greener tomorrow, despite global economic volatility, and we look forward to working with like-minded partners for a positive future,” he added.
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). We are proud to be part of this flagship project, and look forward to a fruitful partnership.”
She added: “Egypt has embarked on a serious economic reform programme, sending a clear invitation to the private sector to support in building a greener and brighter future. As a group, Hassan Allam Holding is committed to be a positive contributor to the environment. We are adopting sustainability principles and expanding our investments into large scale green energy projects.”
Hassan Allam Utilities, the investment and development arm for Hassan Allam Holding, currently operates a 50 MW solar plant in Ben Ban solar park.
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.
The 1.1 GW wind project is forecasted to reach financial close by 3Q24. The plant will by commercially operational by the end of 2026.
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