A 1.1GW wind power project, which will be the largest onshore wind power project in the Middle East and one of the largest in the world, is set to be developed in the Gulf of Suez and Jabal Al-Zeit regions in Egypt. Recently, on the 17th of February 2024, a 25-year usufruct agreement was signed between the New and Renewable Energy Authority (NREA), Acwa Power and Hassan Allam Holdings for the project.
NREA is a government institution responsible for the promotion and development of renewable energy projects in Egypt. The entity, whose main role is providing research and development for new and renewable energy projects is affiliated with some of the most notable projects in the country. These projects include the Zafarana wind farm, the first wind farm in Egypt and Africa, and Benban solar park, one of the top 10 largest solar power plants in the world among others.
ACWA Power, on the other hand, is a developer, investor, co-owner and operator of a portfolio of power generation, renewable energy and desalinated water production plants whilst Hassan Allam Holding is one of the largest engineering, construction, and infrastructure companies in Egypt and the MENA region with more than 85 years of experience.
The agreement for the 1.1GW wind power project in the Gulf of Suez and Jabal Al-Zeit was signed in the presence of the Prime Minister of Egypt, Dr Mostafa Madbouly, the Minister of Electricity and Renewable Energy of Egypt, Dr Mohamed Shaker, Minister Plenipotentiary Abdulrahman bin Salem Al Dahas and Deputy Ambassador of di Arabia in Cairo, Amjad Saeed.
The mandate of the ACWA Power-led consortium in the 1.1GW wind power project in the Gulf of Suez and Jabal Al-Zeit
As per the agreement Acwa Power and Hassan Allam Holdings will help find land across the Gulf of Suez and Gebel al-Zeit for the massive new wind farm that aims to be a powerhouse of clean energy in both Egypt and the Middle East. Additionally, the ACWA Power-led consortium will also help secure financing for the 1.1GW wind power project in the Gulf of Suez and Jabal Al-Zeit the cost of which is approximately US$ 1.5 billion.
In line with its mandate and aim to launch the wind turbines by 2026, the consortium has decided to open up the capital of the project to several other investors. These investors include The Sovereign Fund of Egypt and The Oman Investment Authority (OIA). As it stands, the project is majority-owned by ACWA Power while Hassan Allam Holdings holds a 25% stake. TSFE is targeting a 10% stake.
Once up and running, the 1.1GW wind power project in the Gulf of Suez and Jabal Al-Zeit is expected to supply power to more than one million households. While at it, the power plant will also help eliminate about 2.4 million tonnes of carbon dioxide from the atmosphere and save 840,000 tonnes of fuel or its thereabouts every year. It will thus play a crucial role in providing a cleaner and more sustainable future.