Egypt Signs $420 Million Wind Farm Agreements in Red Sea

جانب من التوقيع.

Dr. Mostafa Madbouly, Egypt’s Prime Minister, attended the signing ceremony on Monday for two agreements related to the development and operation of the Jabal El-Zeit Wind Power Plant in the Red Sea region, which has a capacity of 580 megawatts. The agreements were signed between the New and Renewable Energy Authority and the Egyptian Electricity Transmission Company on one side, and Al-Khazaar Company on the other.

The event was also attended by Minister of Electricity and Renewable Energy Mohamed Shaker, and Minister of Investment and Foreign Trade Mohamed Fares.

The signing of these agreements aligns with the State Ownership Policy Document, which aims to maximize returns from state-owned assets. It also reflects Egypt’s national energy strategy aimed at reducing dependence on fossil fuels and increasing the share of renewable energy sources in the energy mix to 45% over the next two years.

The first agreement was signed by Eng. Ihab Ismail, CEO of the New and Renewable Energy Authority, and Daniel Calderon, Managing Director of Al-Khazaar Company. The second agreement was signed by Eng. Mona Rizk, Chairperson of the Egyptian Electricity Transmission Company, alongside Calderon.

The agreement stipulates that Al-Khazaar will invest in, operate, and manage the Jabal El-Zeit Wind Power Plant through a project company established in accordance with Egyptian laws and regulations. The total investment for this project is estimated at $420 million, sourced from foreign funding aimed at attracting more foreign investments. The agreement outlines that the foreign partner will be responsible for operational management, technical maintenance, and ensuring continuous operation under high standards to maximize benefits from the assets.

Additionally, it mandates renovation and efficiency improvement works to enhance production capacity while maintaining a minimum installed capacity of 580 megawatts throughout the contract duration. The Egyptian Electricity Transmission Company will purchase the generated power during the contract years.

This agreement exemplifies a partnership model with the private sector and continues to build on previous successes in solar energy projects, wind energy projects, and energy storage batteries as part of Egypt’s national energy strategy. The private sector plays a leading role in implementing these initiatives within the state’s vision for transitioning to renewable energy sources.

Eng. Mahmoud Asmat emphasized that this phase focuses on maximizing benefits from available resources and effectively managing state-owned assets to improve performance metrics for affiliated companies. He highlighted support from the Ministry of Electricity and Renewable Energy for all partnership models that achieve mutual benefits while reiterating that private sector leadership is crucial for executing renewable energy projects under Egypt’s national strategy.

Dr. Mohamed Fares noted that this deal aligns with government efforts to empower the private sector and increase its role in economic activities as outlined in the State Ownership Policy Document. This initiative aims to enhance investor confidence in Egypt’s investment climate while ensuring effective governance and improved financial performance of state-owned assets.

Fares commended the pivotal role played by Egypt’s Sovereign Fund in managing this transaction from its inception through creating a competitive framework that attracted one of the world’s largest renewable energy companies under a contractual arrangement balancing state rights with those of serious investors.