Saudi Arabia-based ACWA Power has signed a memorandum of understanding (MoU) with Egypt’s New and Renewable Energy Authority (NREA) to secure land for a 10GW onshore wind project in Egypt.
Under the MoU, ACWA Power has been granted nearly 3,000km2 of land west of the urban centre, Sohag, for the wind project.
The onshore wind facility is projected to produce approximately 50,000GWh of renewable energy each year to deliver electricity to about 11 million households.
Besides, the Egyptian wind project will reduce the impact of 25.5 million tonnes of carbon emissions annually.
The MoU is the next step in the development of the large-scale renewable energy facility, said ACWA Power.
Minister of Electricity and Renewable Energy Mohamed Shaker Al-Marqabi said: “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% by 2035.
“This focus also aligns with Egypt’s Vision 2030 and the National Climate Strategy 2050 with a view to mitigating the impact of climate change challenges and achieving sustainable economic growth.”
According to ACWA Power, the onshore wind power plant will contribute $6.5bn in savings in annual natural gas costs to the Egyptian economy.
Furthermore, the wind project will generate up to 120,000 job opportunities, which include 45,000 in direct employment and about 75,000 indirectly in the construction phase.
Upon the completion of the onshore wind facility, nearly 2,500 jobs will be added for the operation and maintenance phase.
ACWA Power CEO Marco Arcelli said: “Today’s signing furthers our commitment to driving sustainable development and powering Egypt’s future with clean, reliable, and renewable energy.
“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.”
Last month, Masdar, Infinity Power, and Hassan Allam Utilities signed an agreement with NREA to secure land to build a 10GW onshore wind farm in Egypt, which represents a project value of over $10bn.
