Egypt signed investment, operation, and power purchase agreements worth $420m with Alcazar Energy for the 580-megawatt (MW) Gabal El Zeit wind power plant, the government said on June 8.
The agreements, signed in the presence of Prime Minister Mostafa Madbouly, grant Alcazar the rights to invest in, operate, and manage the Red Sea facility through a newly established project company governed by Egyptian law. The $420m investment will be injected from external financing sources.
Under the terms of the deal, the foreign partner will handle technical management, maintenance, and upgrade works to increase production capacity while maintaining a minimum installed capacity of 580 MW throughout the contract period.The Egyptian Electricity Transmission Company (EETC) will purchase the generated power.
The agreements were signed by Alcazar Managing Director Daniel Calderon alongside Ehab Ismail, CEO of the New and Renewable Energy Authority (NREA), and Mona Rizk, Chairperson of the EETC.
The move aligns with Egypt’s National Energy Strategy, which aims to reduce reliance on fossil fuels and increase the share of renewable energy in the country’s energy mix to 45% within the next two years. It also falls under the State Ownership Policy Document, which targets maximising returns from state-owned assets.
