Egypt sovereign fund joins ACWA Power to invest in 1.1 GW wind energy project

ACWA Power, a leading 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 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, in the presence of Egypt Electricity Transmission Committee (EETC) and Egypt’s New and Renewable Energy Authority delegates and other senior executives.

As 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, the company said.

Current project investors include Hassan Allam Holdings, an Egyptian engineering, construction and infrastructure company with a 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.

“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,” Mohammad Abunayyan, ACWA Power Chairman, said in a statement.

“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,” he added.

According to the company, this is the first instance of TSFE investing in ACWA Power’s Egyptian or global portfolio. The company has had a presence in Egypt since 2015 and has developed the 120 MW PV project in Benban, a 200 MW PV facility in Kom Ombo, along with Suez Wind Energy, which will be the largest single contracted wind farm, and largest wind related public private partnership in Africa to date.

Furthermore, ACWA Power has also signed a memorandum of understanding to develop another 10 GW wind project with Egyptian Electricity Transmission Company (EETC), which is likely to be developed in phases.