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Arab Finance: The New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and Alcazar Energy signed two investment, operation, and power purchase agreements for the 580-megawatt Gabal El-Zeit wind farm in the Red Sea Governorate, as per a statement.
The agreements were signed in the presence of Prime Minister Mostafa Madbouly, Minister of Electricity and Renewable Energy Mahmoud Esmat, and Minister of Investment and Foreign Trade Mohamed Farid.
Under the agreements, Alcazar Energy will invest in, operate, and manage the assets of the Gabal El-Zeit wind farm through a project company established in accordance with Egyptian laws and regulations.
With total investments valued at $420 million, the project will be financed through external funding sources as part of efforts to attract additional foreign investment into Egypt.
Alcazar Energy will be responsible for the project's operations, technical management, and maintenance, while implementing replacement, modernization, and efficiency improvement programs to increase production capacity. The agreements require maintaining a minimum installed capacity of 580 MW throughout the contract period, with EETC purchasing the electricity generated by the project.
The agreements align with Egypt's State Ownership Policy, which aims to maximize returns from state-owned assets, and support the National Energy Strategy's target of increasing the contribution of renewable energy to 45% of the country's energy mix within the next two years while reducing reliance on fossil fuels.
The project reflects ongoing efforts to expand private-sector participation in renewable energy projects, including solar, wind, and energy storage developments, as part of Egypt's broader energy transition plans.
Esmat said the government is focused on maximizing the value of available resources, improving the management of state-owned assets, and enhancing the performance of affiliated entities.
He added that the Ministry of Electricity and Renewable Energy continues to support partnership models that create mutual benefits and encourage greater local and foreign private sector participation in renewable energy projects.
Meanwhile, Farid noted that the transaction is consistent with the government's efforts to increase the role of the private sector in economic activity under the State Ownership Policy.
He pointed out that the deal is expected to strengthen investor confidence in Egypt's investment climate and support the government's program to broaden the ownership base of state-owned enterprises while improving governance standards and operational performance.
Farid also praised the role of the Sovereign Fund of Egypt in structuring and managing the transaction, saying the process helped attract one of the world's leading renewable energy companies through a framework designed to balance the interests of both the state and investors.
