Egypt signed investment, operation and power purchase agreements worth $420 million with Alcazar Energy for the 580 MW Gabal El Zeit wind power plant on Monday.
The agreements were signed in the presence of Prime Minister Mostafa Madbouly. They grant Alcazar Energy the rights to invest in, operate and manage the Red Sea facility through a newly established project company under Egyptian law. The $420 million investment will come from external financing sources. Alcazar will handle technical management, maintenance and upgrade works to increase production capacity while keeping a minimum installed capacity of 580 MW. The Egyptian Electricity Transmission Company will purchase the generated power. The deal was signed by Alcazar Managing Director Daniel Calderon, New and Renewable Energy Authority CEO Ehab Ismail and EETC Chairperson Mona Rizk. The move aligns with Egypt’s National Energy Strategy to raise the share of renewable energy to 45 percent within the next two years. Minister of Electricity and Renewable Energy Mahmoud Esmat said the private sector is taking a leading role in renewable projects. Minister of Investment and Foreign Trade Mohamed Farid noted that the Sovereign Fund of Egypt managed the transaction to attract global companies while balancing state and investor rights.