Egypt, Saudi Arabia Ink MoU on $1.5 Bln Wind Energy Project

On Wednesday, the Sovereign Fund of Egypt (TSFE) signed an MoU with Saudi Arabia’s utility developer ACWA Power to explore a joint investment in a $1.5 billion wind energy project with a capacity of 1.1 gigawatt (GW) in the Egyptian Gulf of Suez, a statement said on Tuesday.

TSFE Infrastructure and Utilities sub-fund and ACWA Power signed the MoU on the sidelines of the 27th UN Climate Change Conference (COP27) in Sharm El-Sheikh, according to a press release by the Saudi company.

The 1.1 GW project, expected to be commissioned by 2026, will provide energy to more than a million households and help reduce 2.4 million tonnes of carbon emissions annually.

Under the MoU, the TSFE sub-fund will acquire up to ten percent of the wind project’s stakes, said the release.

The Egyptian New and Renewable Energy Authority and the Egyptian Electricity Transmission Company had also signed an MoU with ACWA Power on 1 November to build a 10 GW wind energy project in Egypt, reportedly the second largest wind farm worldwide.

According to the Saudi company's press release, ACWA Power, present in Egypt since 2015, has been engaged in developing the 120 MW solar power park in Benban in Upper Egypt, which is one of the largest solar power parks in the world.

“As the government of Egypt’s ambitious energy diversification plans continue to gain momentum, it is reassuring to see key investors from the Arab World join hands to support the development of clean energy projects in the country,” said Mohammed Abunayyan Chairman of ACWA Power.