ACWA Power Secures $2.3 Billion Deal for 2GW Wind Project in Egypt

ACWA Power has signed a power purchase agreement worth SAR 8.6 billion with the Egyptian Electricity Transmission Company to develop a 2-gigawatt wind power plant in South Hurghada, Egypt. The 25-year agreement was formalized on February 18, 2025, marking a significant milestone in Egypt’s renewable energy expansion.

The project encompasses the development, financing, construction, ownership, and operation of the wind energy facility. Financial closure is anticipated in 2026, following the completion of environmental studies expected by mid-2026. This initiative aligns with Egypt’s strategic objectives to diversify its energy mix and reduce reliance on fossil fuels.

Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, announced the agreement during the Egypt Energy Show . He highlighted that this project is the largest of its kind in Egypt and is part of a broader collaboration between Saudi and Egyptian companies in the renewable energy sector. Collectively, these initiatives aim to add approximately 1.696 GW of renewable energy capacity to Egypt’s grid, with a total investment nearing SAR 6.2 billion.

In addition to the wind project, Saudi and Egyptian authorities are advancing the Saudi-Egypt Electricity Interconnection Project. Valued at SAR 6.7 billion, this project is designed to facilitate the exchange of up to 3,000 megawatts of electricity between the two nations upon completion of both phases. This interconnection is poised to enhance grid stability and energy security in the region.

Egypt has been actively pursuing renewable energy projects in collaboration with international partners. Notable developments include the Benban Solar Park in Aswan, which boasts an installed capacity of 1.8 GW and features contributions from multiple developers. Another significant venture is the 500 MW Gulf of Suez Wind Farm, developed in partnership with international stakeholders.