CAIRO, June 10 – Egypt has signed agreements worth $420 million to support the investment and operation of the 580 megawatt Gabal El Zeit wind power plant in the Red Sea region, marking another step in the country’s renewable energy expansion plans.
Prime Minister Mostafa Madbouly, alongside other ministers responsible for electricity, investment and foreign trade, witnessed the signing ceremony involving the New and Renewable Energy Authority, the Egyptian Electricity Transmission Company and renewable energy firm Alkazar.
Under the agreement, Alkazar will invest in, operate and manage the wind power facility through a project company established under Egyptian law. The investment will be financed through external funding sources as part of Egypt’s efforts to attract more foreign direct investment.
The company will oversee the plant’s technical operations, maintenance and management while ensuring that it continues to meet high performance standards throughout the contract period.
The deal also includes renovation works, equipment replacements and efficiency upgrades aimed at improving output while maintaining the plant’s installed capacity at no less than 580 megawatts. The Egyptian Electricity Transmission Company will purchase all electricity generated by the facility under the agreement.
Minister of Electricity and Renewable Energy Mahmoud Esmat said the government remains committed to improving the management of state assets and encouraging partnerships that deliver mutual benefits. He noted that private sector investors continue to play an important role in advancing Egypt’s renewable energy ambitions.
Minister of Investment and Foreign Trade Hassan El-Khatib said the agreement reflects the government’s efforts to expand private sector participation in the economy and strengthen investor confidence in Egypt’s investment environment.
He also highlighted the contribution of The Sovereign Fund of Egypt in structuring the transaction and helping attract a major international renewable energy investor under terms designed to protect the state’s interests while supporting long term investment.
The project aligns with Egypt’s State Ownership Policy and the country’s broader energy strategy, which seeks to reduce dependence on fossil fuels and increase the share of renewable energy in the national energy mix to 45 per cent within the next two years.
