Saudi renewable energy giant Acwa Power will construct, own, and operate a 2GW wind power plant in South Hurghada, Egypt, capable of supplying electricity to nearly 2 million homes.
The company has secured a 25-year power purchase agreement (PPA) with Egypt’s state-run Electricity Transmission Company for the SAR 8.6 billion ($2.3 billion) project.
ACWA Power expects to reach financial close next year after completing environmental studies.
In December 2024, the company secured a 20-year senior debt deal worth SAR 2.63 billion ($703 million) with a group of development financial institutions to fund a 1.1 GW wind farm in Egypt’s Suez governorate.
Both projects fall under Egypt’s Nexus of Water, Food, & Energy initiative, which aims to develop 10 GW of renewable energy capacity.
ACWA Power already operates five solar projects in Upper Egypt with a total investment of around $2 billion and plans to expand its photovoltaic solar portfolio, CEO Marco Arcelli told AGBI in September 2024.
Arcelli stated that while the company remains open to acquisitions in new markets, it primarily focuses on strengthening its presence in Egypt, Morocco, and South Africa, prioritizing investments where opportunities grow fastest.
Shares of Acwa Power, which is 44% owned by Saudi Arabia’s Public Investment Fund (PIF), closed at SAR 392 on Tuesday, reflecting a 3% decline since the start of the year.
In a separate announcement, Acwa Power revealed plans to acquire stakes in energy and water assets in Kuwait and Bahrain worth $693 million from French energy firm Engie.
The deal includes 4.6 GW of gas-fired power generation capacity, 1.11 million cubic meters per day of water desalination facilities, and associated operations and maintenance companies in both countries.
As part of the transaction, Acwa Power will acquire an 18% stake in Kuwait’s Az Zour North project, along with 45% stakes in Bahrain’s Al Ezzel and Al Dur projects and a 30% stake in the Al Hidd facility.
Source:agbi.com
