Egypt, Alcazar Energy sign $420 mln agreement for 580 MW Gabal El Zeit wind farm

Egypt signed on Monday development, operation, and power purchase agreements for the 580-megawatt Gabal El-Zeit wind farm in the Red Sea, a $420 million project aimed at expanding private sector participation in renewable energy, the Cabinet said.

The agreements were signed between the New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and Alcazar Energy.

NREA Chairman Ehab Ismail and Alcazar Energy Managing Partner Daniel Calderon signed the investment and operation agreement, while EETC Chairperson Mona Rizk and Calderon signed the power purchase agreement.

Under the agreements, Alcazar Energy will invest in, operate, and manage the wind farm through a project company established under Egyptian law. The company will finance the project through external funding sources.

Alcazar Energy will be responsible for operating, maintaining, and upgrading the facility, including refurbishment and efficiency-enhancement works designed to increase output. The agreements require the project to maintain an installed capacity of at least 580 MW throughout the contract period, with EETC purchasing the electricity generated by the facility.

The government said the project supports its strategy to increase private-sector participation in the energy sector and raise the share of renewable energy in Egypt’s electricity mix to 45% by 2028.

Egypt has expanded renewable energy investment in recent years, relying on private local and foreign investors to develop wind, solar, and energy storage projects as part of its energy transition plans.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser