Egypt is preparing to sell its largest wind farm, Gabal El Zeit, by the end of March, according to the Minister of Planning and Economic Development, Hala Elsaid. The wind farm, which has a capacity of 580 megawatts, is expected to attract several local and international investors, as the country aims to boost its renewable energy sector.
Gabal El Zeit wind farm is located in the Red Sea governorate, about 150 kilometers south of Hurghada. It consists of three phases, with a total of 390 turbines, and covers an area of 120 square kilometers. It is the largest wind farm in Egypt and the Middle East, and one of the largest in the world.
The wind farm is part of the portfolio of the Sovereign Fund of Egypt (TSFE), which was established in 2018 to manage and optimize the state’s assets. The TSFE has put the wind farm up for sale, along with other assets, such as a stake in the fuel retailer Wataniya, as part of its strategy to generate revenues and attract foreign direct investment.
Several companies have expressed interest in buying the wind farm
According to the minister, several companies have expressed interest in buying the wind farm, and the final offers will be received by the end of March. She said that the deal will be based on an energy tariff price of 2.4 US cents per kilowatt hour, with 25 percent of it paid in Egyptian pounds. She added that the buyer will also have the right to use the land for 25 years.
The minister did not disclose the names of the potential buyers, but according to some media reports, they include Actis, a British private equity firm, Masdar, a UAE-based renewable energy company, and Engie, a French energy giant. The deal is expected to be worth around $350 million, according to some sources.
Egypt aims to increase its renewable energy share to 42 percent by 2035
Egypt has been pursuing an ambitious plan to increase its renewable energy share to 20 percent by 2022 and 42 percent by 2035, as part of its efforts to diversify its energy mix, reduce its greenhouse gas emissions, and meet its growing electricity demand. The country has abundant solar and wind resources, especially in the Sinai Peninsula and the Red Sea coast.
Egypt has already installed about 1,375 megawatts of wind power and 1,650 megawatts of solar power, and has several projects under construction or development. The country also hosts the Benban Solar Park, the largest solar park in the world, with a capacity of 1,465 megawatts. Egypt aims to attract $20 billion of investment in its renewable energy sector by 2025.
Category: Energy
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