Sign in
Alcazar has big plans in Egypt: UAE-based Alcazar Energy and the Egyptian government have reportedly agreed to set up a 3.1 GW hybrid solar and wind energy station in Egypt’s Zafarana worth some USD 2.5 bn, two anonymous sources tell Asharq Business.
The details: The project is expected to produce 2 GW of solar energy and 1.1 GW of wind energy, with the station set to be built under a build-own-operate system, one source told Asharq Business. Alcazar is expected to complete its feasibility studies and reach financial close by the end of 2025, with construction to begin in early 2026.
Alcazar has secured usufruct rights from the Egyptian government, agreeing to provide 2% of the project’s total energy production in return. The Egyptian Electricity Transmission Company will purchase the remaining output at USD 0.02 per KW/h for solar power and USD 0.03 per KW/h for wind power for the duration of the project.
Sound familiar? The new agreement is a reformulation and activation of an MoU between Alcazar and Egypt signed last month to establish a 2 GW onshore wind farm, a source from the Egyptian government told EnterpriseAM.
About Zafarana: The project — which spans 120 sqkm and has MW 545 wind power capacity — was commissioned almost two decades ago. It has undergone several phases of expansion, the most recent of which was a MW 120.7 expansion approved in 2013. The government was also planning to sell some stakes from this year but decided to postpone the move last October.
Alcazar is already interested in buying wind power stakes in Egypt: Earlier this year, Alcazar was reportedly one of many local and foreign investors interested in acquiring stakes in Egypt’s 580 MW Gabal El Zeit wind farm and the 545 MW Zafarana wind farm.
