Egypt seals $420mn wind power deal with UAE's Alcazar Energy

Egypt’s New and Renewable Energy Authority and the Egyptian Electricity Transmission Company have signed investment, operation, and power purchase agreements with UAE-based sustainable infrastructure fund Alcazar Energy for the 580MW Gabal El Zeit wind power plant in the Red Sea region, according to a government statement quoted by Asharq Business on June 9.

The Gabal El Zeit complex features an advanced radar monitoring system designed to protect ecosystem biodiversity by automatically shutting down the wind turbines when migratory bird flocks pass through the area.

Under the terms of the agreement, Alcazar will invest, operate, and manage the assets of the Gabal El Zeit plant through a project company established under Egyptian law. The total investment value of the project stands at $420mn, to be entirely financed from foreign sources.

The foreign partner assumes full responsibility for technical operations, management, and maintenance to maximise asset utilisation. Furthermore, the contract mandates refurbishment and efficiency upgrades, ensuring the plant’s installed capacity remains at a minimum of 580MW throughout the contractual period. For its part, the Egyptian Electricity Transmission Company will purchase all energy generated during the contract years.

The deal aligns with Egypt's State Ownership Policy, which aims to support private sector participation and maximise returns on state-owned assets. It also supports the National Energy Strategy, which seeks to reduce reliance on fossil fuels and increase the share of renewables in the energy mix to 45% within the next two years.