PowerChina signs EPC contract to build 1.1GW Suez Wind Project in Egypt

PowerChina has signed an engineering, procurement, and construction (EPC) contract with Suez Wind Energy to build the 1.1GW Suez Wind Project in Egypt's Red Sea Governorate, China Daily reported on January 7. The project is the largest single wind power project signed by PowerChina overseas.

Suez Wind Energy is a joint venture between ACWA Power, a Saudi developer, investor, co-owner and operator of a portfolio of power generation, renewable energy and desalinated water production plants,and HAU Energy, a funding vehicle incorporated in the Netherlands for the purpose of developing and operating renewable energy projects in Egypt. ACWA Power achieved a financial close for the $1.2bn project in January.

The Egyptian government has said that the project will drive local economic growth and enhance regional energy security.

The Suez Wind Project is financed by a consortium of Development Finance Institutions (DFIs), banks, and other financial institutions. Last month, the African Development Bank (AfDB) board of directors agreed to extend up to a $170mn loan to Egypt to support its Suez Wind Project. The plant will operate under a 25-year Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC). 

The wind power plant, near Ras Ghareb and Ras Shokeir, is expected to generate 4.3 TWh/year and offset 2.2 MtCO2/year in emissions. It will be executed in two phases. Each phase has a capacity of 550 MW. The project will operate at full capacity by 2027.

Construction works for the Suez Wind Project involve the construction of foundations, installation of wind turbines, power collection lines, wind measurement towers, a substation, and access roads. 

The project will feature 138 turbines provided by Envision Energy from China.

This is PowerChina’s second wind power project in Egypt under an EPC contract. In 2022 it was awarded a 500MW project near Ras Ghareb.

Wind power production accounted for about 3% of Egypt's installed capacity (1.6 GW) and 2.8% of its total power generation (6.7 TWh) by the end of 2023. Egypt aims to achieve 42% renewable energy in its energy mix by 2030.