RIYADH: Saudi Arabia’s ACWA Power Co. has signed an initial agreement with Egyptian entities to build a 10 gigawatts project to produce electricity from wind energy in the north African country.
The Memorandum of Understanding has been agreed with Egypt’s New & Renewable Energy Authority and Egyptian Electricity Transmission Co., according to the Saudi Ministry of Energy’s statement.
Egypt will be providing the lands necessary to carry out feasibility studies for the project ahead of the signing of the final contracts.
The agreement was signed during a meeting in Riyadh between Electricity Minister Mohamed Shaker and Saudi Energy Minister Prince Abdulaziz bin Salman.
During the meeting, the two ministers also followed up on the progress of the electrical interconnection between the two countries and discussed aspects of cooperation in the fields of renewable energy and hydrogen.
Earlier in June, Saudi Arabia’s ACWA Power invested $1.5 billion in a wind power plant in Egypt as the company expands its horizons in renewable energy.
The 25-year agreement was signed with the Egyptian Electricity Transmission Co, the PIF-owned utility said in a bourse filing.
The deal will see ACWA Power develop, build, and operate the 1,100-megawatt wind farm, located in the Gulf of Suez in Egypt.
The ACWA Power-led consortium also comprised Hassan Allam Holding, and they will work together during the development phase to complete the site studies and secure financing for the facility.
Touted to be the largest single contracted wind farm in the Middle East region and one of the largest onshore wind farms in the world, this power plant is located in the Gulf of Suez and Gabal El Zeit area.
The statement further noted that this project will also mitigate the impact of 2.4 million tons of carbon dioxide emissions per year and provide electricity to 1,080,000 households.
“This wind project demonstrates a commitment to realizing a greener tomorrow, despite global economic volatility, and we look forward to working with like-minded partners for a positive future,” said Mohammad Abunayyan, chairman of ACWA Power.
In July, Egypt topped the list of Arab countries in the production of wind power and solar energy, with 3.5 gigawatts of capacity, and plans to reach 6.8 gigawatts in 2024, according to the Information and Decision Support Center of the Egyptian Cabinet.