Masdar-led consortium now has land for its 10-GW mega-wind farm

Masdar-led consortium secures land for mega wind farm in Egypt: UAE’s Masdar, Infinity Power, and Hassan Allam Utilities signed a land allocation agreement with the Egyptian government for a 10-GW wind farm in Sohag, the companies said in a joint statement (pdf)yesterday. The agreement comes eight months after the companies signed an MoUfor the project on the sidelines of COP27.

What we know: At a cost of USD 10 bn, the wind farm is set to be one of the largest in the world. It is expected to produce 47.7k GWh of clean energy every year, saving the country about USD 5 bn annually by reducing natural gas consumption, according to the statement. The companies estimate that the plant will offset nearly 24 mn tons of CO2 emissions each year, equal to around 9% of the country’s total carbon footprint in 2021. The first phase of the project will be up and running within four years, Masdar CEO Mohamed Jameel Al Ramahi told Al Arabiya.

Feasibility studies + finance on the way: The developers will in the “coming period” carry out feasibility, investor onboarding and environmental studies to bring the project online, Ramahi said at a press conference yesterday (watch, runtime: 37:05). The developers expect the project will reach financial close within the next 15 months, and will receive 70-80% of the funding from international institutions, he told Al Arabiya.

Great news for Egypt’s renewables targets: Another 10 GW of wind capacity will help Egypt meet its target of sourcing 42% of its energy from renewables by 2030. The government recently announced a new longer-term goal targeting 60% by 2040.

Power mainly for local use -NREA:The plant will be connected to the national grid where it feed most of its power for local consumption, the CEO of the New and Renewable Energy Authority, Mohamed Al Khayyat, said in an interview on Al Hayah Al Youm last night (watch, runtime: 7:31). This will enable the government to export more natural gas, a key source of hard currency, he said.

But there is still export potential: The government is looking to export electricity to Libya, Sudan, and to the GCC through its planned link with Saudi Arabia, and to Europe via a number of proposed interconnectors. Infinity Power — part of the developers on the 10 GW wind farm — signed an MoU back in May with Greece-based Copelouzos Group to explore the feasibility of jointly developing renewable energy projects to supply the planned 3-GW Egypt-Greece interconnector.

Big FDI potential for Egypt: The consortium is expected to bring in an estimated USD 20 bn in direct investments into the country: USD 10 bn through the 10 GW wind plant, USD 4 bn for its planned green hydrogen plant, and USD 6 bn to bring online the 7 GW of clean energy that will power it, Al Ramahi said yesterday.