The agreements were signed between the New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and energy developer AlcaZar Energy during a ceremony attended by Prime Minister Mostafa Madbouly, Electricity Minister Mahmoud Esmat, and Investment Minister Hassan El-Khatib.
The project will be developed in the Gabal El-Zeit area on Egypt's Red Sea coast.
Under the agreement, AlcaZar Energy will finance, operate, and manage the wind farm through a project company established under Egyptian law. The Egyptian Electricity Transmission Company will purchase the electricity generated by the facility under a long-term power purchase agreement.
The project's $420 million cost will be financed through external funding sources, according to officials.
AlcaZar Energy will also be responsible for the plant's operation, maintenance, and rehabilitation works, with the agreement requiring the facility to maintain a minimum installed capacity of 580MW throughout the contract period.
The deal forms part of Egypt's broader push to increase private-sector participation in the energy sector and expand renewable electricity generation.
Egypt aims to raise the share of renewable energy in its electricity mix to 45 percent as part of its national energy strategy, which seeks to reduce reliance on fossil fuels and expand wind and solar generation capacity.
The Gulf of Suez region is one of Egypt's most important wind energy corridors due to its strong and consistent wind speeds, making it a focal point for several large-scale renewable energy projects developed in recent years.
The government has increasingly relied on private investment to finance renewable energy projects, including wind, solar, and battery storage facilities, as it seeks to meet rising electricity demand while limiting pressure on public finances.
The agreement also aligns with Egypt’s State Ownership Policy, which aims to expand private-sector involvement in economic activity and increase returns from state-owned assets.
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