ACWA to Set Up Wind Energy Project in Egypt

ACWA Power, Saudi Arabia’s leading power company, has secured a power purchase agreement (PPA) with the state-run Egyptian Electricity Transmission Company (EETC) for a $2.29 billion 2 GW major wind energy project in south Hurghada region in Egypt.

Saudi Minister of Energy Prince Abdulaziz bin Salman announced this during the Egypt Energy Show 2025 on Tuesday, highlighting the project’s significance for Egypt’s renewable energy future. The Saudi Minister also informed the progress made in the $1.8 billion Saudi-Egypt Electricity Interconnection Project.

In a disclosure with Saudi Exchange Tadawul, the deal signed allows the company to “develop, finance, construct, own, and operate” the power plant for 25 years. Besides, Saudi companies such as ACWA Power, Alfanar, FAS, and MOWAH, have launched five renewable energy projects in Egypt.

Together, these projects will contribute 1.696 GW of renewable capacity, with an investment totalling nearly $1.6 billion.

“This initiative, set to be the largest of its kind in the region, will enable the exchange of 3,000 megawatts (MW) between Saudi Arabia and Egypt once completed in two phases,” the Minister said.

These developments underline the growing cooperation between Saudi Arabia and Egypt in advancing renewable energy solutions across the region.

In December, ACWA Power announced that it had successfully concluded financing agreements for its 1.1 GW wind power project in Egypt’s Suez Governorate. The agreements, which are set over a 20-year period, totalling $700 million.

The overall investment for the project stands at $1.1 billion, with ACWA Power holding a 70 percent share in the development. ACWA Power has partnered with several development financial institutions to secure the financing needed.

These institutions include the European Bank for Reconstruction and Development (EBRD), African Development Bank (ADB), the British International Investment, the German Investment and Development Corporation, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation.

Standard Chartered Bank and Arab Bank have provided the project’s core debt financing, which the European Bank for Reconstruction and Development has facilitated.

Egypt’s NZE Targets

It may be recalled that Egyptian Prime Minister Mostafa Madbouly told the COP29 conference, held in Azerbaijan in November last year, that the country was developing the renewable energy sector to reach 42% of its electricity generation mix by 2030, but that goal will be at risk without more international support.

However, Egypt’s petroleum ministry revised the target share for renewables to 40% by 2040, with the country maintaining a major reliance on natural gas.

Egypt plans to increase its renewable energy capacity by nearly 10 GW by 2030 and achieve this through a mix of public and private sector projects. Of this capacity, nearly 4.7 GW will come from projects carried out by the private sector.

Currently, solar, wind and hydropower make up only 11.5 percent of Egypt’s electricity generation, according to a July cabinet report.