Saudi ACWA Power secures $2.29 bln deal for major wind energy project in Egypt

Ahram Online , Tuesday 18 Feb 2025

Leading Saudi energy company ACWA Power has secured a power purchase agreement (PPA) with the state-run Egyptian Electricity Transmission Company (EETC) for a major wind energy project in Egypt's south Hurghada, with a total investment of 8.6 billion Saudi riyals (approximately $2.29 billion).

Snapshot of the agreement signing

The Saudi company will invest in a 2 GW wind farm, the largest in Egypt.

Saudi Minister of Energy Prince Abdulaziz bin Salman announced this during the Egypt Energy Show 2025, highlighting the project’s significance for Egypt’s renewable energy future.

According to a statement by the company on the Saudi Trade Exchange, the deal signed on Monday allows the company to "develop, finance, construct, own, and operate" the power plant for 25 years.

In addition, Saudi companies, including ACWA Power, Alfanar, FAS, and MOWAH, have launched five renewable energy projects in Egypt.

Together, these projects will contribute 1.696 GW of renewable capacity, with an investment totalling nearly SAR 6.2 billion (approximately $1.6 billion).

Prince Abdulaziz also highlighted the progress made in the SAR 6.7 billion (approximately $1.8 billion) Saudi-Egypt Electricity Interconnection Project.

"This initiative, set to be the largest of its kind in the region, will enable the exchange of 3,000 megawatts (MW) between Saudi Arabia and Egypt once completed in two phases," he said.

These developments underline the growing cooperation between Saudi Arabia and Egypt in advancing renewable energy solutions across the region.

In December, ACWA Power announced that it had successfully concluded financing agreements for its 1,100-megawatt wind power project in Egypt’s Suez Governorate. The agreements, which are set over a 20-year period, total SAR 2.6 billion ($700 millions)

The overall investment for the project stands at SAR 4.13 billion ($1.1 billion), with ACWA Power holding a 70 percent share in the development.

ACWA Power has partnered with several development financial institutions to secure the financing needed.

These institutions include the European Bank for Reconstruction and Development, the African Development Bank, the British International Investment, the German Investment and Development Corporation, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation.

Standard Chartered Bank and Arab Bank have provided the project's core debt financing, which the European Bank for Reconstruction and Development has facilitated.