Renewable Energy: Egypt to Build Wind Power Mega-Plant

Egypt’s Energy Transition Program predicts that by 2030, 42% of energy will come from renewable energy sources. As part of this rather ambitious program, given the North African country’s current economic difficulties, a consortium was formed consisting of Infinity Power, a joint venture between Infinity of Egypt and Masdar of the United Arab Emirates, with the support of Hassan Allam Utilities, an Egyptian renewable energy company. They signed a concession agreement with the Egyptian government to build one of the world’s largest onshore wind farms with a capacity of 10 gigawatts of electricity. The ceremony was attended by Egyptian Prime Minister Moustafa Madbouly and Minister of Electricity and Renewable Energy Mohamed Shaker. The investment, required to implement the project, is estimated at 10 billion dollars. The agreement with the Egyptian government provides for the transfer to the consortium of 3025 square kilometers of land in the West Sohag governorate to build a wind farm, which, at full capacity, will produce approximately 9% of Egypt’s total annual electricity generation.

The project will allow Egypt to reduce carbon dioxide emissions by 23.8 million tons per year and save about $5 billion in annual costs for natural gas used as fuel for power plants. Earlier in 2022, during the UN Climate Change Conference (COP 27) held in the Egyptian city of Sharm el-Sheikh, the consortium signed an agreement with Egypt’s state-owned electricity transmission company that will allow it to dock the new wind turbines with existing and new electricity grids.

Cooperation between Egypt and the United Arab Emirates is also accelerating in the real estate sector: Cairo has received the second tranche of $14 billion from Emirates Abu Dhabi Developmental Holding Company (ADQ) as part of the $35 billion agreement to develop the seaside and tourist city of Ras Al-Hikma (also known as Ras Al-Hekma). This is a new quota granted by the Emirates after the 10 billion paid between late February and early March. The Egyptian government has also started converting Emirati deposits at the Central Bank worth $6 billion into Egyptian pounds.