Egypt and the United Arab Emirates (UAE) have signed two agreements worth $600 million to develop a 500 megawatt (MW) wind energy project in the Gulf of Suez. The Egyptian cabinet announced the agreements in a statement on Saturday.
The first agreement, named the Power Purchase Agreement (PPA), involves the sale of electricity generated by the wind farm to the Egyptian Electricity Transmission Company (EETC). The second agreement, called the Network Connection Contract, focuses on connecting the wind farm to Egypt’s national electricity grid.
The wind farm will have an installed capacity of 500 MW. It will be located in the Gulf of Suez, a region known for strong wind speeds that are ideal for generating electricity. The project will be developed by AMEA Power, a UAE-based renewable energy company, under the Build-Own-Operate (BOO) model. This means the company will handle the construction, ownership, and operation of the wind station.
According to the cabinet statement, “the wind farm will help Egypt expand its renewable energy production. Egypt has set a target of producing 42% of its electricity from renewable energy sources by 2030. The Gulf of Suez wind station is part of this plan.” The electricity generated from the project will be sold to EETC under the PPA agreement for a long-term period. However, the statement did not disclose the timeline for the construction or completion of the wind farm.
Egypt has been increasing its investments in renewable energy projects, including wind and solar power, to reduce its dependence on fossil fuels. The UAE has also been financing renewable energy projects in other countries, with AMEA Power playing a role in these efforts. Both Egypt and UAE are working towards increasing the installed renewable capacity in the middle east.
