Egypt has signed a 25-year land usufruct agreement (legal right granted to a person or party which grants a temporary right to use/derive income/benefit from the property of another individual) for a colossal wind power project.
The agreement, signed between the consortium led by Saudi-listed ACWA Power and the Egyptian New and Renewable Energy Authority (NREA), marks a significant milestone in the country’s ambitious plans (Egypt Vision 2030) for sustainable development and renewable energy.
This project aims to be the largest of its kind in the Middle East and one of the world’s largest onshore wind projects.
Prime Minister Mustafa Madbouly and ACWA Power’s CEO, Thomas Brostrom, attended the signing ceremony, where Brostrom underscored the cutting-edge technology that will be employed, ensuring the highest level of efficiency and performance in the Suez Gulf region.
The benefits of this wind power project will also be felt in households across the nation as the generated electricity is projected to provide power to approximately 1,080,000 households—equivalent to around one million housing units—bringing sustainable energy solutions to a vast number of people.
With a capacity of 1.1 gigawatts, the wind farm will be situated in the Gulf of Suez and Gebel El Zeit areas, representing a substantial investment of up to USD 1.5 billion.
Once operational, the wind power project will mitigate carbon dioxide emissions by an estimated 2.4 million tonnes annually, contributing significantly to Egypt’s efforts to combat climate change.
Moreover, it is set to save approximately 840,000 tons of fuel per year, reducing reliance on traditional energy sources. The positive effects will extend to the local economy, as the project is anticipated to create around 6,000 job opportunities.