Saudi developer of power generation and desalinated water production plants Acwa Power has entered a memorandum of understanding (MoU) with the New and Renewable Energy Authority (NREA) to allocate land for the development of a 10GW wind project in Egypt.
The agreement was signed at the headquarters of the Council of Ministers in the new city of El Alamein, Egypt.
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Its signing is considered to be a milestone, helping pave the way for the development of the large-scale wind project.
The agreement follows the MoU signed between ACWA Power, the Egyptian Electricity Transmission Company and the NREA in November 2022.
Land covering 3,000km² west of Sohag City has been allocated for the project, which will generate 50,000 gigawatt-hours of clean energy – enough to power 11 million Egyptian homes while offsetting 25.5 million tonnes of carbon emissions annually.
Egypt’s Electricity and Renewable Energy Minister, Mohamed Shaker Al-Marqabi, stated: “Egypt has adopted an ambitious programme to advance the electricity sector in various fields, which includes maximising the utilisation of new and renewable energy resources, encouraging investment in these fields to enable energy independence from fossil fuels, continuing to reduce carbon emissions and increasing renewable energy capacity in the energy mix up to 42% by 2035.
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By GlobalData“This focus also aligns with Egypt’s Vision 2030 and the National Climate Strategy 2050 with a view to mitigating the impact of climate change challenges and achieving sustainable economic growth. This project is also an extension of the historical relations between the Egyptian state and the brotherly Kingdom of Saudi Arabia and reflects the bonds of fruitful and constructive cooperation between the two countries.”
The 10GW wind farm will save $6.5bn (E£200.91bn) in annual natural gas costs for Egypt while creating 120,000 jobs during its construction phase and an estimated 45,000–75,000 indirect jobs in the region.
The operations and maintenance phase will also create up to 2,500 permanent jobs.
