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UAE-headquartered renewable energy investor Alcazar Energy Partners (AEP) has signed definitive agreements with Egyptian government entities for the 580-megawatt (MW) Gabal El-Zeit wind farm, located in the Red Sea region.
Under the terms of the deal, the Dubai-based company has inked a Power Purchase Agreement (PPA) with the Egyptian Electricity Transmission Company (EETC). Additionally, it signed investment and operations agreements with the New and Renewable Energy Authority (NREA).
AEP will undertake the investment, operations, and management of the asset through a dedicated project company established under Egyptian law. The project will involve a $420 million investment, which is set to be sourced via external financing.
While the specific tenure of the PPA was not disclosed, standard wind power agreements in Egypt typically carry a 25-year term, with green field projects structured procured on Build-Own-Operate (BOO) basis.
A Zawya Projects report in January 2026 had noted that the UAE firm was close to clinching the acquisition deal for the facility.
The Gabal El-Zeit wind farm is one of several prominent state-owned enterprises being divested by Egypt as part of its ongoing government privatisation and asset monetisation programme. The transaction structure for this public-private partnership (PPP) deal was overseen by The Sovereign Fund of Egypt (TSFE).
The contract also mandates renovation and efficiency improvement works to boost productivity, while maintaining a minimum capacity of 580 MW throughout the contract duration.
The project is being highlighted as a benchmark model for future utility-scale PPPs in the country, aligning with Egypt's broader sustainable energy transition targets.
AEP is also negotiating with the Egyptian government for the development of the 500MW Niat wind farm along the Suez Canal, according to a November 2025 statement posted on the developer's website. The estimated $600 million project was expected to break ground in mid-2026. AEP said it entered a binding share sale and purchase agreement with Siemens Gamesa Renewable Energy, which signed a build, finance and operate agreement for Niat with the Egyptian government in March 2025.
(Writing by Eman Hamed; Editing by Anoop Menon)
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