• TSFE to potentially acquire up to 10% stake in the wind project through its Infrastructure & Utilities Subfund
• Project investors include Egypt’s Hassan Allam Holdings and Oman Investment Authority
• Valued at US$1.5 billion, the project is expected to be commissioned by 2026

Sharm El Sheikh, Egypt; November 15, 2022: ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide, today 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, located 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; Hassan Amin, Country Director- Egypt, ACWA Power, in the presence of Egypt Electricity Transmission Committee (EETC) delegates, Egypt’s New and Renewable Energy Authority delegates and other senior executives.

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. Currently, project investors include Hassan Allam Holdings, an Egyptian engineering, construction and infrastructure company (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.

This is the first instance of The Sovereign Fund of Egypt (TSFE) investing in ACWA Power’s Egyptian or worldwide 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.

By 2026, the 1.1 GW Wind Energy project will provide energy to over a million households and displace 2.4 million tonnes of carbon dioxide emissions annually. Elsewhere on the African continent, ACWA Power has a number of projects in development or in operation; five projects in Morocco and three in South Africa all in renewable energy.