Egypt’s Cabinet has approved golden licenses for two 900-megawatt (MW) renewable energy projects in the Red Sea region and the Gulf of Suez, the Shadwan wind power project and the Ras Shokeir wind farm. The approval clears a combined 1.8 gigawatts (GW) of renewable energy capacity for development.
The Shadwan and Ras Shokeir wind power projects will supply electricity to the Egyptian Electricity Transmission Company (EETC). The approvals also come as Egypt continues to expand private-sector participation in renewable energy infrastructure.
Egypt approves golden licenses… What does a golden license mean?
The golden license, officially known as the single approval, is a government authorization mechanism established under Egypt’s Investment Law No. 72 of 2017.
It is designed to streamline the implementation of strategic investment projects. The approval consolidates key permits and authorizations required for project establishment, operation and management. This reduces the need for investors to navigate multiple administrative procedures independently.
For the Shadwan and Ras Shokeir wind power projects, the golden licenses are expected to facilitate implementation by simplifying regulatory processes. The licenses will also support progress towards the projects’ respective completion dates in 2028.
However, the approvals do not automatically guarantee project financing, construction completion or grid connection.
Shadwan Wind Power Project
The first approval covers Shadwan Wind Power, an Egyptian joint-stock company developing a 900 MW wind farm in the Ras Shukeir area of the Red Sea Governorate. The project encompasses the development, construction, management, operation and maintenance of the wind power facility. Electricity generated will be sold to EETC.
The project is scheduled for completion on March 31, 2028. It is also expected to create approximately 2,500 jobs during construction, followed by around 50 permanent positions during its planned 25-year operational period. Additionally, employment opportunities are expected to prioritize residents of the Red Sea Governorate and neighboring governorates.
The wind farm is also expected to contribute to Egypt’s emissions-reduction objectives. Shadwan wind power project is set to increase the share of renewable electricity in the national energy mix. Further project development will involve the infrastructure required to generate and transmit electricity to the national grid.
Ras Shokeir Wind Power Project
The second golden license covers the Ras Shokeir wind power project in the Gulf of Suez. The 900 MW facility will be developed under a build-own-operate (BOO) model. This means the project company will develop and own the facility, and will also be responsible for its operation.
The project will include the design, construction, management, operation and maintenance of the wind power generation plant. As with Shadwan wind power project, the electricity generated from Ras Shokeir will also be sold to EETC under the project’s power-purchase arrangements.
Completion of the Ras Shokeir wind power project is scheduled for November 1, 2028, following an anticipated 24-month construction phase. The project is expected to generate approximately 800 jobs during construction. It will also create 25 permanent positions throughout its planned 25-year operational period.
Additionally, the development will add to Egypt’s wind generation capacity in the Gulf of Suez. The Gulf of Suez has, over the years, become an area attractive for investments in large-scale wind power because of its wind resources and potential for utility-scale renewable energy generation.
Private-sector investment in Egypt’s renewable energy infrastructure
The two golden license approvals form part of Egypt’s broader effort to attract domestic and international investment into energy infrastructure. This is while increasing electricity generation from renewable sources. By granting golden licenses, the government aims to reduce administrative hurdles for strategic projects. It also aims to support their progression through the investment and implementation process.
The BOO model for Ras Shokeir also provides a framework in which the project developer retains ownership and operational responsibility. This is while selling generated electricity to the national transmission company. Long-term power-purchase arrangements (PPAs) can also provide a revenue framework for developers. The PPAs can also help support the financing of capital-intensive infrastructure.
Once completed, the Shadwan and Ras Shokeir wind power projects in Egypt will provide a combined 1.8 GW of installed generation capacity. However, their contribution to actual electricity supply will depend on construction progress and commissioning. Factors that follow thereafter, including wind conditions and the availability of grid infrastructure to transmit their output also factor in the projects’ contribution to future electricity supply.
With completion targeted for 2028, the projects also represent another step in Egypt’s plans to expand renewable energy generation beyond installations such as the Gulf of Suez Wind Farm II – which is also largest in Africa. The projects will also attract private investment and support a lower-carbon electricity system.
Shadwan Wind Power Project Fact Sheet
Location: Ras Shukeir, Red Sea Governorate
Installed capacity: 900 MW
Project company: Shadwan Wind Power
Project approval: Golden license approved October 28, 2026
Electricity offtaker: Egyptian Electricity Transmission Company (EETC)
Target completion: March 31, 2028
Expected construction employment: 2,500 jobs
Expected operational employment: 50 jobs
Planned operating period: 25 years
Ras Shokeir Wind Power Project Fact Sheet
Location: Gulf of Suez
Installed capacity: 900 MW
Developer: Shokeir Wind Energy
Project model: Build-own-operate (BOO)
Project approval: Golden license approved October 28, 2026
Electricity offtaker: Egyptian Electricity Transmission Company (EETC)
Target completion: November 1, 2028
Expected construction employment: 800 jobs
Expected operational employment: 25 jobs
Planned operating period: 25 years
Combined capacity: 1.8 GW
Who is involved in the Shadwan and Ras Shokeir wind power projects?
Egyptian Cabinet: Approved the golden licenses for both projects.
Shadwan Wind Power: Project company behind Shadwan wind farm.
Scatec: Developer associated with the Shadwan project.
EDF Power Solutions: Associated with Shadwan’s development.
Shokeir Wind Energy: Project company for the Ras Shokeir wind farm.
ENGIE: Holds 35% stake in the Ras Shokeir project consortium.
Aeolus / Toyota Tsusho: Aeolus holds 40% stake in the Ras Shokeir consortium.
Orascom Construction: Holds 25% stake in the Ras Shokeir consortium.
Egyptian Electricity Transmission Company (EETC): Electricity offtaker for both projects.
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