The wind farm will help Egypt meet its strategic objective of sourcing 42 per cent of its energy from renewables by 2030
Abu Dhabi Future Energy Company (Masdar), Infinity Power (Masdar’s joint venture with Egypt’s Infinity) and Hassan Allam Utilities (a sustainable infrastructure-focused investment platform) have signed an agreement with Egypt’s New and Renewable Energy Authority to secure land to build a 10-gigawatt (GW) capacity onshore wind farm in Egypt.
The wind farm is set to be one of the largest of its kind in Africa, with a project value of more than $10bn.
The key wind project will produce 47,790GWh of clean energy per year and reduce around 9 per cent of Egypt’s annual carbon emissions by displacing 23.8 million tonnes of carbon dioxide annually.
The wind farm will also help Egypt meet its strategic objective of sourcing 42 per cent of its energy from renewables by 2030.
The 10GW plant will save Egypt an estimated $5bn in natural gas costs a year.
The original agreement to develop the 1GW wind farm was signed between Masdar, Hassan Allam Utilities, Infinity Power and the Egyptian Electricity Transmission company and witnessed by the presidents of the UAE and Egypt on the sidelines of the UN climate change conference, COP27, in Sharm El Sheikh, Egypt last year.
#Masdar, Infinity Power and Hassan Allam Utilities have signed an agreement with Egypt’s New and #RenewableEnergy Authority to secure land to build a 10GW capacity onshore wind farm in Egypt – one of the largest in the world,with a project value of over US$ 10 billion. pic.twitter.com/Ab3QrebwWX
— Masdar (@Masdar) June 6, 2023
Masdar-led consortium to lead development of wind farm
The project is being developed by the consortium led by Masdar and its partners.
Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, chairman of Masdar and COP28 President-Designate, said: “This 10GW onshore wind project is set to be one of the largest wind farms in the world, and largest on the African continent. It is a sign of the strong partnership between the UAE and Egypt, with great potential to create jobs, cut emissions and power homes with clean electricity at competitive economical costs. The world needs to triple renewable energy capacity by 2030 to meet the goals of the Paris Agreement.
“Projects like these will support the global efforts to reduce the impact of climate change and help keep the ambition of 1.5 intact while enabling significant socio-economic growth. The UAE looks forward to hosting COP28, we continue to stand shoulder-to-shoulder with the Global South in their efforts to decarbonise and secure a just energy transition.”
Dr Mohamed Shaker Al-Markabi, Minister of Electricity and Renewable Energy in Egypt, said: “Egypt has an ambitious programme to advance the Egyptian electricity sector in various fields, foremost of which is optimising the use of new and renewable energy resources and encouraging investment in this field, which would contribute to reducing dependence on fossil fuels and continue to reduce carbon emissions, in line with Egypt’s energy strategy to have up to 42 per cent of our energy mix from renewable energy sources by 2030, while complementing the National Climate Strategy 2050 to face the challenges of climate change and achieve sustainable economic growth.”
He added: “Renewable energy in Egypt has the potential to attract direct foreign investments, and the national Egyptian entities play a vital role in creating an environment that is supportive of investment with low risks, and high interaction with the financing institutions and development partners.
“In addition, Egypt has comparative advantages in terms of the land available which is necessary to produce a huge volume of electricity from renewable resources. Furthermore, Egypt’s geographical location enables it to export green energy to Europe, especially as the country looks to further enhance and raise the efficiency of its national grid.”
Supporting the development of renewables
In March, Masdar became the largest operator of renewables in Africa after its joint venture with Egypt’s Infinity – Infinity Power – acquired Lekela Power, a renewables developer with operations across the continent. Masdar also demonstrated its commitment to African nations by signing deals to develop renewable energy projects with a combined capacity of up to 5GW in Angola, Uganda, and Zambia, in January.
Nayer Fouad, CEO, Infinity Power said: “This project is a milestone achievement for us at Infinity Power, which reflects the partnership between Masdar and Infinity Power as a leading investment platform in renewable energy. It not only positions us as a leading provider of renewable energy but also strengthens the growing relationship between the Emirates and Egypt.
“Apart from being a key source of renewable energy, the farm will also create employment opportunities for local communities.”
Masdar has a large presence in Egypt with projects dating back to 2015, which represents a starting point to target the African continent through Infinity Power platform.
During COP27 last year, Masdar, Infinity Power and Hassan Allam Utilities also signed agreements with Egyptian state-backed organisations to develop green hydrogen and derivatives’ production facilities. The consortium is targeting a capacity of 4 GW by 2030, and an output of up to 480,000 tonnes of green hydrogen per year.
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