CAIRO - 17 July 2023: Egypt's Ministry of Electricity, represented by the New and Renewable Energy Authority, signed a document with Saudi-based company ACWA Power on Monday to allocate and provide land for the initiation of studies and measurements for a 10-gigawatt wind energy project in the West Sohag region.
According to the land allocation document, the project is expected to generate approximately 50,000 gigawatt-hours of renewable energy upon completion, reducing annual carbon dioxide emissions by 2.4 million tons and supplying electricity to around 11 million residential units.
Upon the completion of all project phases, it is estimated that the wind energy project will save Egypt approximately $6.5 billion in annual natural gas costs and create around 120,000 job opportunities. This includes 45,000 direct employment opportunities during the construction phase, as well as indirect employment for approximately 75,000 individuals. Additionally, there will be 2,500 jobs for operation and maintenance after the completion of the entire plant.
Minister of Electricity, Mohamed Shaker, stated that the state has adopted an ambitious program to advance the electricity sector, with a focus on maximizing the utilization of renewable energy resources and encouraging investment in this vital field.
Shaker emphasized that the renewable energy sector contributes to reducing dependence on fossil fuels and lowering carbon emissions, aligning with Egypt's energy sector strategy to achieve a 42 percent share of renewable energy sources in the energy mix by 2030.
The Minister highlighted that this project is an extension of the historical relations between Egypt and the sisterly Kingdom of Saudi Arabia. It reflects the fruitful and constructive cooperation between the two countries and demonstrates Egypt's ability to attract foreign direct investments in renewable energy.
He also emphasized the importance of Egyptian national institutions in creating an investment climate with low risks and positive interaction with financial institutions and development partners. Furthermore, he highlighted Egypt's relative advantages in providing the necessary land for producing a significant amount of electricity from renewable sources, as well as its geographical location, enabling the export of green energy.
Marco Archilli, CEO of ACWA Power, stated that the agreement confirms their commitment to advancing Egypt with clean, reliable, and renewable energy, contributing to driving sustainable development in the country. He added that this project underscores ACWA Power's dedication to contributing to a brighter future for Egypt by providing new job opportunities and preserving the environment, reducing carbon dioxide emissions in line with the company's vision of safeguarding the planet for future generations.
ACWA Power has been present in Egypt since 2015, with ongoing or under-development projects. This wind energy project is the company's fourth in the renewable energy sector and the second in the field of wind energy, following the Benban solar project with a capacity of 120 megawatts, the Kom Ombo solar project with a capacity of 200 megawatts, and the wind farm in the Gulf of Suez and Jabal Al-Zeit with a capacity of 1,100 megawatts.