Egypt intends to buy electricity generated from wind energy projects developed by Saudi company ACWA Power on the Red Sea coast at a rate of 2.4 US cents per kilowatt-hour for a period of 20 years, Al-Khaleej Online has reported.
A government official in Cairo made the announcement when speaking to Saudi channel Asharq on Sunday, following the Egyptian cabinet’s approval of the agreement. This initiative aligns with Egypt’s strategy to boost electricity production from renewable energy sources.
According to the official, ACWA Power’s generating plant will be located south of Hurghada on Egypt’s Red Sea coast and will be implemented under the build-operate-transfer (BOT) system for 20 years, with the Saudi company fully funding and executing the project.
On 18 February, ACWA Power announced the signing of an agreement to develop a wind energy project in Egypt, valued at approximately $2.3 billion.
In January, the Saudi company, in partnership with Egypt’s Hassan Allam Utilities, won a project to generate electricity from wind energy in the Gulf of Suez and Jabal El-Zeit regions. The project has a capacity of 1.1 gigawatts and an investment of up to $1.5bn.
