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 Monday.
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.
Minister of Electricity and Renewable Energy Mahmoud Esmat stated that the state’s current approach focuses on maximising the utilisation of available resources and improving the performance of affiliated entities. He noted that the private sector is taking a leading role in implementing renewable energy and battery storage projects, adding that the state is working to create a favourable climate to attract foreign and domestic investments in solar and wind energy.
Minister of Investment and Foreign Trade Mohamed Farid said the transaction aligns with government efforts to empower the private sector and enhance investor confidence. He added that the deal demonstrates the government’s seriousness in implementing its programme to expand the ownership base of state-owned enterprises, which aims to improve the governance, financial, and operational indicators of government assets.
Farid also noted the role of the Sovereign Fund of Egypt, which managed the transaction from its inception by creating a competitive framework that attracted a global renewable energy company while balancing the rights of both the state and the investor.
