Saudi’s ACWA Power granted land for 10GW wind project in Egypt

Image: ACWA Power

Saudi Arabia-based ACWA Power has signed a memorandum of understanding (MoU) with Egypt’s New and Renewable Energy Authority (NREA).

The MoU involves the allocation of land for a 10GW wind project in Egypt.

Dr Mohamed Shaker Al-Marqabi, Egypt’s Minister of Electricity and Renewable Energy, stated: “Egypt has adopted an ambitious programme to advance the electricity sector in various fields, which includes maximising the utilisation of new and renewable energy resources, encouraging investment in these fields to enable energy independence from fossil fuels, continuing to reduce carbon emissions, and increasing renewable energy capacity in the energy mix up to 42 per cent by 2035.

“This focus also aligns with Egypt’s Vision 2030 and the National Climate Strategy 2050 to mitigate the impact of climate change challenges and achieve sustainable economic growth.”

Al-Marqabi added: “We foresee that the positive contributions with financing institutions and development partners, as well as the comparative advantages of Egypt in terms of the availability of land, will show that Egypt has what it takes to produce renewable energy for domestic consumption and export.”

We are proud to announce that ACWA Power signed an MoUwith New and Renewable Energy Authority (NREA), granting us land for the construction of a 10 GW wind project in Egypt. Upon completion, the wind farm is expected to be one of the largest in the region. pic.twitter.com/TshqIgswCw

— ACWA Power-Accelerating Energy Transition Globally (@ACWAPower) July 17, 2023

The MoU allocates approximately 3,000 square kilometres of land west of Sohag, an urban centre, for the project.

The wind project is expected to generate around 50 thousand gigawatt-hours of clean energy annually, providing electricity to around 11 million households and mitigating the impact of 25.5 million tonnes of carbon emissions each year.

Marco Arcelli, CEO, of ACWA Power, said: “We are determined to harness the vast potential of wind power, creating jobs, reducing emissions, and ensuring a greener and brighter future for Egypt, in alignment with ACWA Power’s vision for a sustainable planet.”

The wind power plant is expected to provide the Egyptian economy with $6.5bn savings in annual natural gas costs in addition to creating up to 120,000 job opportunities. Indirect employment in the construction phase is estimated at 45,000 people, and around 75 thousand people indirectly, in addition to adding about 2,500 jobs for the operation and maintenance phase after the completion.

Other ACWA Power projects in Egypt

ACWA Power has three other facilities in Egypt, that are either in operation, under construction or in advanced development, including a 120MW solar PV project in Benban, a 200MW solar PV facility in Kom Ombo, and the 1.1GW Suez Wind Energy project.

The company has had a presence in Egypt since 2015.