ACWA Power and TSFE explore investment in 1.1 GW Suez wind farm

4C Offshore | Tom Russell
By: 16/11/2022 ACWA Power

ACWA Power, a Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, has signed a memorandum of Understanding (MoU) with The Sovereign Fund of Egypt (TSFE) to explore a joint investment in the 1.1 GW Wind Energy project, located in the Gulf of Suez in Egypt.

Per the terms of the MoU, ACWA Power 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 (25% stake) and ACWA Power. The Oman Investment Authority, the Sultanate’s sovereign wealth fund, recently signed a similar agreement with ACWA Power, to have an equity stake of up to 10% of the same facility.

Valued at US$1.5 billion, the 1.1 GW Wind Energy project is expected provide energy to over a million households and displace 2.4 million tonnes of carbon dioxide emissions annually. Commissioning be achieved start as early as 2026, according to ACWA Power.

"As the Government of Egypt’s ambitious energy diversification plans continue to gain momentum, it is assuring to see key investors from the Arab World join hands to support the development of clean energy projects in the country. This tangible endorsement signifies that Arab investors are looking firmly towards implementing sustainable solutions that benefit communities while ensuring global climate action pledges. At ACWA Power, we are proud that regional and global project finance organisations continue to place strong confidence in our ability to deliver giga scale renewable projects that are delivering impact and value across the world," said Mohammad Abunayyan, ACWA Power Chairman.

"This is another significant manifestation to our strategy to continue to invest into renewable power generation to decarbonise Egypt\'s energy sector and capitalise on green energy sources in the country. It shows our commitment to transition from pledges to implementation in collaboration with private-sector pioneers. We have strong confidence in our partner’s ability to deliver such large-scale projects, building on their expertise in the renewable energy field and their presence in the Egyptian market," said Karim Badr, CEO of TSFE’s Infrastructure & Utilities Subfund.

Earlier this month, ACWA Power revealed it signed a memorandum of understanding to develop a 10 GW wind project with Egyptian Electricity Transmission Company (EETC), which is likely to be developed in phases.


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