ACWA Power secures $2.3bn agreement for Egypt’s largest wind energy project

Riyadh, Saudi Arabia – ACWA Power, a Saudi-based leader in renewable energy and water desalination, has signed a $2.3 billion power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for the development of a landmark 2-gigawatt (GW) wind energy project in Egypt. The project, which surpasses the company’s existing 1.1 GW Suez Wind Farm, will be the largest wind farm in the country and one of the largest single-asset independent power producer (IPP) projects in Africa.

The 25-year agreement grants ACWA Power the rights to develop, finance, construct, own, and operate the facility. The project is expected to reach financial close by 2026, contributing significantly to Egypt’s goal of increasing the share of renewable energy in its electricity generation mix to 42% by 2030.

What Makes This Wind Energy Project Significant?

The newly announced 2 GW wind project will play a pivotal role in Egypt’s renewable energy strategy, reinforcing the country’s commitment to reducing reliance on fossil fuels and cutting carbon emissions. Once operational, the facility is projected to offset more than 3.5 million tonnes of carbon dioxide annually, positioning Egypt as a regional leader in sustainable energy production.

The deal also further cements ACWA Power’s dominance in Egypt’s energy market. With this project, the company’s total investments in the country’s renewable energy sector will exceed $8.8 billion, bringing its total gross capacity in Egypt and Africa to 4.8 GW. ACWA Power’s Chairman, Mohammad Abunayyan, highlighted that the agreement reflects the company’s long-standing commitment to Egypt’s sustainable energy transition, reinforcing its role as the leading private investor in Africa’s power sector.

How Will the Project Strengthen Saudi-Egypt Energy Collaboration?

Saudi Arabia and Egypt have been strengthening their cooperation in renewable energy, with ACWA Power playing a key role in major projects across both nations. The announcement was made by Saudi Minister of Energy Prince Abdulaziz bin Salman during the Egypt Energy Show 2025, underscoring the significance of the deal in advancing regional energy ties.

In addition to ACWA Power’s wind energy project, Saudi investors, including Alfanar, FAS, and MOWAH, have launched five additional renewable energy initiatives in Egypt. Collectively, these projects will contribute approximately 1.7 GW of renewable capacity, with investments totaling nearly $1.6 billion.

The partnership extends beyond wind energy. The Saudi-Egypt Electricity Interconnection Project, valued at $1.8 billion, is another milestone in the region’s energy cooperation. The project, which will enable the exchange of 3,000 megawatts (MW) of electricity between the two nations, is expected to be completed in two phases.

Why Is Egypt Attracting Major Renewable Energy Investments?

Egypt’s strategic location, abundant wind and solar resources, and government-backed incentives have positioned it as a prime destination for large-scale renewable energy investments. The country has been implementing policies aimed at diversifying its energy mix and reducing its dependence on natural gas and oil.

With this latest deal, Egypt continues to attract foreign direct investment in its renewable energy sector, aligning with its commitment to the Paris Agreement and other global sustainability initiatives. The government has also been encouraging public-private partnerships to accelerate the transition to clean energy.

What Is ACWA Power’s Track Record in Egypt?

ACWA Power has been active in Egypt’s renewable energy sector since 2015, with multiple projects already in operation. The company’s portfolio includes a 120 MW solar photovoltaic (PV) plant in Benban and a 200 MW solar PV facility in Kom Ombo.

In December 2024, ACWA Power finalized financing agreements for its 1.1 GW wind project in Egypt’s Suez Governorate. The $1.1 billion project, structured over a 20-year period, was supported by major international financial institutions, including the European Bank for Reconstruction and Development, the African Development Bank, British International Investment, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation. Standard Chartered Bank and Arab Bank also provided core debt financing for the project.

What Are the Broader Implications for the Renewable Energy Sector?

The agreement between ACWA Power and the Egyptian government is part of a broader trend of increasing renewable energy investments across Africa and the Middle East. As global energy demand shifts towards sustainability, countries in the region are positioning themselves as key players in wind, solar, and green hydrogen production.

For ACWA Power, this expansion into Egypt further solidifies its leadership in renewable energy, particularly in emerging markets. The company has also been at the forefront of green hydrogen development, leveraging its expertise to drive the next phase of sustainable energy innovations.

What Comes Next for ACWA Power in Egypt?

With the 2 GW wind energy project now secured, ACWA Power is expected to continue expanding its footprint in Egypt’s renewable sector. The company has previously expressed interest in further investments in green hydrogen, desalination, and large-scale solar energy projects in the country.

As Egypt moves towards achieving its 2030 renewable energy targets, partnerships with international energy firms like ACWA Power will be crucial in ensuring the successful deployment of clean energy infrastructure. The company’s latest deal not only reinforces its commitment to sustainability but also signals a long-term vision for strengthening energy security and economic cooperation between Saudi Arabia and Egypt.