ACWA Power has signed a power purchase agreement (PPA) with the Egyptian Electricity Transmission Company (EETC) for a 2-gigawatt (GW) wind energy project in South Hurghada, Egypt. The project is valued at 8.6 billion Saudi riyals ($2.29 billion).
Saudi Minister of Energy Abdulaziz bin Salman announced the agreement at the Egypt Energy Show 2025. He stated that five renewable energy projects have been launched in Egypt by Saudi companies, with a total capacity of 1.696 GW and an investment of nearly 6.2 billion Saudi riyals.
The projects involve Saudi companies ACWA Power, Alfanar, FAS, and MOWAH. In addition to these renewable energy initiatives, Saudi Arabia and Egypt are working on the Saudi-Egypt Electricity Interconnection Project. This project, valued at 6.7 billion Saudi riyals, will enable the exchange of 3,000 megawatts (MW) of electricity once both phases are completed. It will be the largest electricity interconnection project in the region.
Egypt has been developing renewable energy projects with various international companies. The Benban Solar Park in Aswan has an installed capacity of 1.8 GW and includes projects from multiple developers. Another large-scale wind project, the 500MW Gulf of Suez Wind Farm, is being developed with international partners.
Other renewable energy projects in Egypt include the 252MW West Bakr Wind Farm, operated by Lekela Power, and the 200MW Kom Ombo Solar Plant, being developed by ACWA Power. The Egyptian government has also been working on green hydrogen production and exploring offshore wind energy potential in the Mediterranean Sea.
Saudi investment in Egypt’s renewable energy sector is part of a broader collaboration between the two countries in power generation and grid development.
