Prime Minister Mostafa Madbouly presided over the signing of two pivotal agreements to establish a 200-megawatt (MW) wind farm in the Gulf of Suez. These agreements, signed between the Egyptian Electricity Transmission Company (EETC), the New and Renewable Energy Authority (NREA), and a consortium led by Masdar and Infinity, mark a significant step forward in Egypt’s renewable energy ambitions.

The agreements align with Egypt’s strategic vision to elevate the role of renewable energy in the national power grid, while actively encouraging private sector participation in solar and wind energy projects. Earlier this August, Minister of Electricity and Renewable Energy Mahmoud Esmat announced that the ministry aims to add 30 gigawatts (GW) of renewable energy, a move projected to save $4.1 billion annually in fuel costs.

According to the agreements, the Masdar-Infinity consortium will be responsible for the development, financing, and operation of the wind farm, which is slated to begin commercial operations by October 2026. This project is expected to significantly boost the share of renewable energy in Egypt’s electricity mix, reinforcing the nation’s commitment to its renewable energy targets.

Prime Minister Madbouly highlighted that these agreements are part of the government’s broader initiative to expand electricity generation from sustainable sources and decrease reliance on traditional energy. He emphasized that renewable energy is the cornerstone of Egypt’s energy future, and that exploring every avenue to maximize its potential is crucial.

Minister Esmat added that the signing of these agreements is a key milestone in the government’s plan to accelerate the development of the renewable energy sector. By harnessing Egypt’s vast natural resources, the country aims to reduce fossil fuel consumption and cut carbon emissions. Esmat also noted that the project will create numerous direct and indirect job opportunities during both construction and operation.

“We are delighted to collaborate with Masdar, a global leader in renewable energy, to bring this critical project to life,” Esmat stated. He affirmed that the project underscores Egypt’s capacity to attract substantial foreign direct investment (FDI) in the renewable energy sector. Esmat also praised the ability of Egyptian entities to cultivate a low-risk investment climate, fostering positive engagement with financial institutions and development partners.

In February, Egypt signed seven memoranda of understanding (MoUs) in green hydrogen and renewable energy with leading global developers, securing investments totaling $41 billion over the next decade. Additionally, in May 2023, the Egyptian parliament approved legislation to expedite the completion of the El-Dabaa nuclear plant.