RIYADH: Egypt’s $10-billion wind energy project announced last year moved one step closer to its execution after the consortium responsible for the renewable project signed a deal on June 6 to secure the required land.
Led by the UAE government-owned renewable energy company Masdar, the consortium signed an agreement with Egypt’s New and Renewable Energy Authority to secure a site for the construction of the 10-gigawatts capacity onshore wind farms in the country.
The consortium also includes Infinity Power, which is Africa’s largest renewable energy developer, and Egypt’s Hassan Allam Utilities, an investment platform for power, renewables and water-related opportunities.
The deal will help Egypt move toward achieving its annual goal of slashing carbon emissions by 9 percent as the onshore wind farms will produce 47,790 GWh of clean energy per year while displacing 23.8 million tons of carbon dioxide.
The North African country has set a goal of sourcing 42 percent of its energy from renewables by 2030. That said, the new plant is estimated to save Egypt an estimated $5 billion in natural gas costs on a yearly basis.
Masdar said the deal cements its commitment toward supporting African nations such as Egypt to meet their ambitious renewable energy objectives.
“This 10 GW onshore wind project is set to be one of the largest wind farms in the world, and largest on the African continent,” said the UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President-Designate, Sultan Al-Jaber.
He added: “It is a sign of the strong partnership between the UAE and Egypt, with great potential to create jobs, cut emissions and power homes with clean electricity at competitive economical costs.”
From Egypt’s side, Minister of Electricity and Renewable Energy Mohamed Shaker Al-Markabi stressed that renewable energy in the country has the potential to attract direct foreign investments.
“National Egyptian entities play a vital role in creating an environment that is supportive of investment with low risks, and high interaction with the financing institutions and development partners,” he explained.
During COP27 last year, Masdar, Infinity Power and Hassan Allam Utilities also signed agreements with several Egyptian state-backed organizations to develop green hydrogen and derivatives’ production facilities.