CAIRO - 9 June 2026: Prime Minister Mostafa Madbouly witnessed the signing of two agreements for the investment, operation, and power purchase framework of the 580-MW Gabal El Zeit wind power plant in the Red Sea area.
The agreements were signed between the New and Renewable Energy Authority and the Egyptian Electricity Transmission Company on one side, and Alkazar on the other. The ceremony was attended by Minister of Electricity and Renewable Energy Mahmoud Esmat and Minister of Investment and Foreign Trade Hassan El-Khatib.
The signing comes within the framework of Egypt’s State Ownership Policy Document, which aims to maximize the value and returns of state-owned assets. It also supports the country’s national energy strategy, which targets reducing reliance on fossil fuels and increasing the share of renewable energy to 45% of the energy mix over the next two years.
Under the agreements, Alkazar will invest in, operate, and manage the Gabal El Zeit wind power plant through a project company to be established in line with Egyptian laws and regulations. The project’s investment value amounts to $420 million, financed through external funding sources, as part of Egypt’s efforts to attract more foreign direct investment.
Alkazar will be responsible for the plant’s operation, technical management, and maintenance, while ensuring continued performance in line with the highest standards to maximize the value of the asset.
The agreements also cover replacement, renovation, and efficiency-upgrade works aimed at increasing the plant’s production capacity, while maintaining its installed capacity at no less than 580 MW throughout the contract period. The Egyptian Electricity Transmission Company will purchase the electricity generated by the plant for the duration of the agreement.
The deal represents a model for partnership with the private sector and builds on Egypt’s progress in renewable energy projects. Solar, wind, and battery storage projects under the national energy strategy are being implemented by both local and foreign private sector investors, with private investment playing a key role in Egypt’s energy transition.
Minister of Electricity and Renewable Energy Mahmoud Esmat said Egypt’s current approach focuses on maximizing the use of available resources, improving the management and utilization of state-owned assets, increasing returns, and enhancing the performance of affiliated companies and authorities.
He added that the Ministry of Electricity and Renewable Energy supports all forms of partnerships that create mutual benefit, noting that the private sector is playing a leading role in implementing renewable energy projects under the national energy strategy.
Esmat also stressed that the state is working to create an attractive investment climate, expand opportunities for local and foreign private sector participation, and support investment across various fields, particularly solar and wind energy.
Minister of Investment and Foreign Trade Hassan El-Khatib said the transaction reflects the government’s efforts to empower the private sector and expand its role in economic activity, in line with the State Ownership Policy Document.
He added that the deal reinforces investor confidence in Egypt’s investment climate and demonstrates the government’s commitment to broadening the ownership base of state-owned companies, improving governance standards, and enhancing the financial and operational performance of state assets.
El-Khatib also praised the role of The Sovereign Fund of Egypt in managing the transaction from its early stages. He said the fund helped establish a competitive framework that attracted one of the world’s leading renewable energy companies under a balanced contractual structure that safeguards the state’s rights while supporting serious investors.
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