The agreements come within the framework of exalting the role of new and renewable energy in the power mix promoting the private sector and relying on it in establishing solar and wind power plants.

Earlier in August, Minister of Electricity and Renewable Energy Mahmoud Esmat revealed that the ministry targets adding 30 gigawatts of renewable energy which is expected to result in fuel savings of $4.1 billion annually.

According to the agreements, the consortium will develop, finance, and operate the project expected to start operating commercially in October 2026.

This project will contribute to increasing the contribution of renewable energy to the electrical energy mix and enhancing the country's efforts to achieve its goals in the renewable energy field.

PM Madbouly said these agreements are part of the government's plan to execute more targeted projects in the field of renewable energy to expand the generation of electricity from these sustainable sources and decrease the dependency on traditional energy sources.

He also noted that the future of energy in Egypt is strongly believed to lie within the new and renewable energy. Thus, searching for ways to generate the largest possible amount of new and renewable energy is important.

Esmat added that the signing of the two agreements comes within the government’s plan to develop the renewable energy sector to enlarge the outcomes and benefit from the available natural resources reducing the usage of fossil fuel and in return decreasing carbon emissions.

Furthermore, Esmat noted that this project will create many direct and indirect job opportunities through the construction and operation periods.

“We are happy to collaborate with the Emirati company Masdar, which is a pioneer in the field of renewable energy, to establish this important project,” stated Esmat

Moreover, he affirmed that this project manifests the ability of Egypt's renewable energy to attract foreign direct investments (FDIs).

He also highlighted the ability of Egyptian entities to find an investment climate of low risks and positive interaction with the financing entities and development partners.

In February, Egypt signed seven memoranda of understanding (MoU) in green hydrogen and renewable energy with seven global developers at investments totalling $41 billion over 10 years.

Additionally, the Egyptian parliament approved in May 2023 a bill to speed up the completion of the El-Dabaa nuclear plant.