An agreement was signed on Tuesday between Egypt’s Ministry of Electricity and Masdar, a UAE-based renewable energy developer, to construct a wind power plant in Sohag province, Upper Egypt. This significant step brings Egypt’s $10-billion wind energy project, announced last year, closer to fruition.
The consortium, led by Masdar, also includes Infinity Power, Africa’s largest renewable energy developer, and Egypt’s Hassan Allam Utilities, an investment platform focusing on power, renewables, and water-related opportunities. Their agreement with Egypt’s New and Renewable Energy Authority secures a site for the construction of onshore wind farms with a total capacity of 10 gigawatts.
The wind farms will play a crucial role in Egypt’s pursuit of reducing carbon emissions by 9 percent annually. With an estimated annual production of 47,790 GWh of clean energy, these wind farms are expected to offset 23.8 million tons of carbon dioxide. Egypt aims to source 42 percent of its energy from renewable sources by 2030, and the wind power plant will contribute significantly to achieving this goal while also saving the country approximately $5 billion in natural gas costs each year.
Masdar expressed its commitment to supporting African nations like Egypt in meeting their ambitious renewable energy targets. Sultan Al-Jaber, the UAE Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President-Designate, hailed the project as one of the world’s largest wind farms and the largest on the African continent. He emphasized the partnership between the UAE and Egypt, highlighting its potential to generate employment, reduce emissions, and provide clean electricity to households at competitive economic costs.
Minister of Electricity and Renewable Energy Mohamed Shaker Al-Markabi emphasized that renewable energy in Egypt has the potential to attract direct foreign investment. He noted the role of Egyptian entities in creating an investment-friendly environment with low risks and strong engagement with financial institutions and development partners.
Additionally, during COP27 last year, Masdar, Infinity Power, and Hassan Allam Utilities signed agreements with various Egyptian state-backed organizations to develop facilities for green hydrogen and derivatives’ production. These initiatives demonstrate Egypt’s commitment to advancing renewable energy and sustainable development.
