Saudi Arabia’s ACWA Power has signed a power purchase agreement (PPA) for a 2GW onshore wind project in Egypt, representing an investment of approximately $2.3bn.
The company signed the PPA with the Egyptian Electricity Transmission Company (EETC) for a period of a 25 years.
The project is expected to become the country’s largest wind farm, surpassing ACWA Power’s 1.1GW Suez onshore wind farm.
It is also expected to become the largest single-asset independent power producer (IPP) in Egypt.
ACWA Power aims to strengthen its position as Egypt’s and Africa’s largest renewable energy developer based on contracted projects. The company’s total investment in the region has reached $8.8bn, with a gross capacity of 4.8GW.
The wind farm is expected to reach financial close in 2026. It will contribute to Egypt’s goal of increasing the share of renewable energy in its electricity generation mix to 42% by the end of this decade.
Additionally, the onshore wind project is set to reduce carbon dioxide emissions by more than 3.5 million tonnes annually, supporting the country’s climate change mitigation efforts.
ACWA Power founder and board of directors chairman of Mohammad Abunayyan said: “Our agreement with EETC reinforces the strong and enduring partnership between ACWA Power and the Egyptian government, driving sustainable development with vigor over the past decade.
“Additionally, it is a key step in expediting the country’s highly inspiring and ambitious energy transition, with this project we confirm ACWA Power as the leading private investor in power in Africa.”
ACWA Power has been operating in Egypt since 2015 and currently runs two other renewable energy projects. These are a 120MW solar photovoltaic (PV) plant in Benban and a 200MW solar PV facility in Kom Ombo.
In December 2023, ACWA Power signed a framework agreement with the Sovereign Fund of Egypt (TSFE), the Suez Canal Economic Zone (SCZone), EETC, and the New and Renewable Energy Authority (NREA) for a $4bn green hydrogen project.
This followed a memorandum of understanding signed in December 2022.
