Egypt and UAE company to develop $600m wind power plant

Egypt has signed an agreement with Dubai-based energy company AMEA Power to build a 500-megawatt (MW) wind power project in the Gulf of Suez, according to media reports.

The $600 million project reflects the country’s commitment to expand its renewable energy capacity, prime minister Mostafa Madbouly said.

The renewable energy sector is a key focus for Egypt, the prime minister said, pointing to the vast natural resources and favourable conditions for green energy projects.  

On Saturday, Madbouli inaugurated a $500 million Abydos Solar PV Plant in the southern city of Aswan governate.

With a capacity of 500 MW, the plant was completed in just 18 months and is expected to help alleviate summer power shortages, which have plagued the nation due to rising electricity demand, Agence France-Presse reported quoting the prime minister.

Last month, Karim Badawi, minister for petroleum, said Cairo has cut its renewable energy goal for 2040 from 58 percent down to 40 percent and will focus on natural gas to meet increasing energy demand.

The government announced a 58 percent target in June, which has now been abandoned, as the cash-strapped Cairo government strives to overcome a deep electricity crisis.

In December 2023, Hussein Matar, senior director of business development at AMEA Power, told AGBI at the Cop28 climate conference in Dubai that the company is ready to develop projects worth $15 billion in Africa as it ramps up production of green hydrogen.