Egypt: Record of land receipt for wind energy project in Sohag signed, attracting over $10bln in FDIs

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Egypt - Prime Minister Mostafa Madbouly presided over the signing ceremony of a land receipt record for a monumental wind energy project west of Sohag.

This initiative, boasting a capacity of 10 gigawatts, is propelled by foreign direct investments (FDIs) surpassing $10bn.

The project is a collaborative effort involving Abu Dhabi Future Energy (Masdar), Hassan Allam Utilities, and Infinity Power, with the signing witnessed by Mohamed Shaker, Minister of Electricity and Renewable Energy.

The land receipt was endorsed by Mohamed El Khayyat, CEO of the New and Renewable Energy Authority, alongside alliance representatives: Mohamed Asaad Taher, Senior Director of Business Development and Investment at Abu Dhabi Future Energy; Karim Hefzy, COO of Hassan Allam Utilities; and Mohamed Mansour, Chairman of Infinity Power.

This agreement extends the memorandum of understanding (MoU) inked at the COP27 conference in Sharm El-Sheikh in November 2022, involving the alliance, the Egyptian Electricity Transmission Company, and the New and Renewable Energy Authority. It marks a pivotal phase in the project’s development, with plans to commence technical studies and construction preparations immediately upon land delivery.

Minister Shaker announced that this venture stands as the most expensive wind-powered electrical energy project in the Middle East and ranks among the world’s largest onshore wind energy endeavours. Upon completion, it is expected to generate approximately 48,000 GW/h of clean energy annually, helping to prevent around 23.8 million tonnes of carbon dioxide emissions. The project also promises to create roughly 23,000 direct and indirect jobs throughout its construction and operational phases.

The Minister emphasized Egypt’s ambitious agenda to advance the electricity sector, prioritizing the efficient harnessing of new and renewable energy resources and fostering investment in this domain. This strategy aims to diminish reliance on fossil fuels and further cut carbon emissions, aligning with Egypt’s goal to derive up to 42% of its energy from renewable sources by 2030, in accordance with the 2050 National Climate Strategy for tackling climate change and promoting sustainable economic growth.

He further noted that the project underscores the enduring, fraternal ties between Egypt and the Emirates, reflecting the robust, constructive collaboration between the nations.

Minister Shaker highlighted that Egypt’s renewable energy sector is poised to attract FDIs, with national organizations playing a crucial role in cultivating an investment-friendly climate characterized by low risks and active engagement with financial institutions and development partners. Additionally, Egypt’s vast land resources are essential for generating substantial electricity from renewable sources. The country’s strategic geographical position also positions it as a potential green energy exporter to Europe, particularly as efforts to enhance and optimize the national grid continue.