Egypt has secured a $420 million foreign investment commitment for a 580-megawatt wind power project on the Red Sea coast, marking another significant step in the country's drive to expand renewable energy capacity and attract private-sector capital into the energy sector.
The investment will be made by Dubai-based Alcazar Energy, which signed agreements with Egypt's New and Renewable Energy Authority (NREA) and the Egyptian Electricity Transmission Company (EETC) to invest in, operate and manage the Gabal El-Zeit wind farm in the Red Sea Governorate. The project will be financed through external funding sources, providing a fresh inflow of foreign capital into Egypt's renewable energy sector.
The agreements, signed in the presence of Prime Minister Mostafa Madbouly, cover the investment, operation and power purchase arrangements for the facility, which will have a minimum installed capacity of 580 MW throughout the contract period. Under the deal, EETC will purchase the electricity generated by the wind farm under a long-term power purchase agreement.
Alcazar Energy will assume responsibility for the plant's technical management, operations, maintenance and future upgrades aimed at improving efficiency and boosting power output. The project will be managed through a company established under Egyptian law.
The Gabal El-Zeit project forms part of Egypt's broader strategy to increase private-sector participation in key economic sectors while accelerating the transition to cleaner energy sources. The government is targeting a 45 per cent share for renewable energy in the country's power mix within the next two years as it seeks to reduce dependence on fossil fuels and meet rising electricity demand.
Located along the Gulf of Suez, one of the region's strongest wind corridors, Gabal El-Zeit is expected to strengthen Egypt's position as a leading renewable-energy market in the Middle East and North Africa, where large-scale wind and solar projects are increasingly being used to attract foreign investment and support long-term energy security.
