TSFE Infrastructure and Utilities sub-fund and ACWA Power signed the MoU on the sidelines of the 27th UN Climate Change Conference (COP27) in Sharm El-Sheikh, according to a press release by the Saudi company.
The 1.1 GW project, expected to be commissioned by 2026, will provide energy to more than a million households and help reduce 2.4 million tonnes of carbon emissions annually.
Under the MoU, the TSFE sub-fund will acquire up to ten percent of the wind project’s stakes, said the release.
The Egyptian New and Renewable Energy Authority and the Egyptian Electricity Transmission Company had also signed an MoU with ACWA Power on 1 November to build a 10 GW wind energy project in Egypt, reportedly the second largest wind farm worldwide.
According to the Saudi company's press release, ACWA Power, present in Egypt since 2015, has been engaged in developing the 120 MW solar power park in Benban in Upper Egypt, which is one of the largest solar power parks in the world.
“As the government of Egypt’s ambitious energy diversification plans continue to gain momentum, it is reassuring to see key investors from the Arab World join hands to support the development of clean energy projects in the country,” said Mohammed Abunayyan Chairman of ACWA Power.
Egypt: a promising hub of clean energy
On the sidelines of COP27, Egypt signed MoUs with international and Egyptian companies and consortiums to conduct studies for implementing wind energy projects with capacities of up to 28,000 MW and expected investments of up to $34 billion, Minister of Electricity and Renewable Energy Mohamed Shaker said.
During the conference’s Energy Day on Tuesday, Egypt signed nine framework agreements to implement projects for producing green hydrogen and its derivatives with capacities of up to 47,000 MW and investments of up to $85 billion, Shaker added.
Egypt also launched its national strategy for green hydrogen production and storage during the Energy Day of COP27 on Tuesday with a vision to produce green hydrogen at the cheapest price worldwide.
The country has been keen on expanding renewable energy projects and aims to increase the supply of electricity generated from renewable sources to 42 percent by 2035.
It plans to boost its green investments to 50 percent of total public investments by 2024/2025, up from 40 percent currently.