Egypt has taken a significant step towards renewable energy expansion by signing a 25-year Power Purchase Agreement (PPA) with ACWA Power for the country’s largest wind energy project. The 2-gigawatt (GW) wind farm is set to be developed in the Gulf of Suez and Gabal el-Zeit area, further solidifying Egypt’s commitment to clean energy and sustainability.
A Game-Changer for Egypt’s Renewable Energy Sector
The $2.3 billion wind power project is expected to be a key driver in Egypt’s goal to increase the share of renewable energy in its electricity mix to 42% by 2030. This initiative is part of Egypt’s ambitious strategy to reduce reliance on fossil fuels and cut carbon emissions in line with global climate action commitments.
Upon completion, the wind farm will be the largest in Africa and the Middle East, surpassing ACWA Power’s existing 1.1GW Suez Wind Farm. The project will not only contribute to Egypt’s energy security but also create thousands of jobs during the construction and operational phases.
Project Investment and Economic Impact
The 2GW wind farm marks one of the largest foreign direct investment (FDI) projects in Egypt’s energy sector. ACWA Power’s investment in the country now totals $8.8 billion, spanning various renewable energy ventures. The wind project aligns with Egypt’s Vision 2030 economic strategy, aiming to attract green investment and boost local infrastructure.
With an estimated production capacity of 6,500 GWh annually, the project will provide clean energy to millions of households while reducing carbon dioxide emissions by over 3.5 million tonnes per year. This milestone aligns with Egypt’s efforts to become a regional renewable energy hub.
Strategic Partnerships and Timelines
ACWA Power is leading the project in collaboration with the Egyptian Electricity Transmission Company (EETC), the New and Renewable Energy Authority (NREA), and international financing partners. The financial closure for the wind farm is expected by 2026, with construction set to begin shortly after.
This PPA agreement follows previous renewable energy projects in Egypt, including the Benban Solar Park and other wind farms, reinforcing the country’s commitment to sustainable energy solutions.
Egypt’s largest wind energy project is a pivotal moment for the country’s green transition. With strong investments, strategic partnerships, and government backing, the 2GW wind farm is set to revolutionize Egypt’s renewable energy landscape while contributing to global climate change mitigation efforts. As Egypt continues to prioritize clean energy, projects like this will play a crucial role in achieving sustainability goals and energy independence.
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