Acwa Power has signed a memorandum of understanding (MOU) with The Sovereign Fund of Egypt (TSFE) to explore a joint investment in a 1.1-gigawatt wind energy project in the Gulf of Suez in Egypt.
The MOU was signed at COP27 in Sharm El Sheikh by Karim Badr, chief executive officer, TSFE Infrastructure & Utilities Subfund; Yasir Mahmoud, executive vice-president, business development, Acwa Power; and Hassan Amin, country director, Egypt, Acwa Power. Also present were representatives from the Egypt Electricity Transmission Committee (EETC), Egypt’s New and Renewable Energy Authority, and other senior executives.
Saudi Arabia-based Acwa Power, a leading developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, and TSFE will now engage in discussions for TSFE’s Infrastructure & Utilities Subfund to own up to 10% of the project.
Currently, project investors include Hassan Allam Holdings, an Egyptian engineering, construction and infrastructure company with a 25% stake, and Acwa Power.
Acwa Power also signed an MOU with the Oman Investment Authority (OIA) to explore bringing in the sovereign wealth fund as an investor in the Suez wind energy project. OIA will assess the possibility of owning up to 10% of the project, which is valued at US$1.5 billion in totality.
When completed in 2026, the Suez wind energy project will be the largest single contracted wind farm, and largest wind-related public private partnership in Africa to date. It will provide energy to over a million households and displace 2.4 million tonnes of carbon dioxide emissions annually.
This is the first instance of TSFE investing in Acwa Power’s Egyptian or worldwide portfolio. The company, which has a presence in Egypt since 2015, has developed a 20-megawatt solar photovoltaic project in Benban and a 200MW PV facility in Kom Ombo, along with Suez Wind Energy.
Separately, Acwa Power has also signed an MOU to develop another 10GW wind project with EETC, which is likely to be developed in phases.