Acwa Power to Build Major Wind Power Plant in Egypt in $2.3 Billion Deal

Acwa Power, the Saudi renewable energy giant, has announced tthis week hat plans are underway to build, own, and operate a 2-gigawatt (GW) wind power plant in South Hurghada, Egypt.

This large-scale facility, which is expected to generate enough electricity to power nearly 2 million homes, is part of the company’s ongoing expansion into the North African renewable energy market. The company, listed on the Saudi Stock Exchange, has signed a 25-year power purchase agreement (PPA) with the Egyptian Electricity Transmission Company for the SAR8.6 billion ($2.3 billion) project. The plant’s financial closure is anticipated to occur next year, following the completion of environmental studies.

This wind power initiative is part of Egypt’s Nexus of Water, Food & Energy program, which includes ambitious renewable energy targets, such as achieving 10GW of wind and solar power. In addition to this project, Acwa Power is also moving forward with a 1.1GW wind power plant in the Suez Governorate, following the signing of a 20-year debt agreement worth SAR2.63 billion ($703 million) in December 2024. These investments represent significant steps in the company’s strategy to contribute to the region’s renewable energy transition and help Egypt meet its sustainability goals.

Beyond its wind projects in Egypt, Acwa Power is also broadening its presence across the Middle East and North Africa. The company has made substantial investments in solar power in Upper Egypt and is actively pursuing further opportunities in photovoltaic solar power. CEO Marco Arcelli has noted that Acwa Power is particularly focused on strengthening its footprint in Egypt, Morocco, and South Africa, while remaining open to acquisitions in new markets. Additionally, the company has reached a deal to acquire stakes in gas-fired power plants and desalination assets in Kuwait and Bahrain, marking a further expansion of its portfolio in the region.