ACWA Power, Saudi Arabia’s renewable energy leader, has announced plans to construct, own, and operate a 2GW wind power plant in South Hurghada, Egypt, which is expected to provide electricity to nearly 2 million homes.
The project, valued at SAR 8.6 billion ($2.3 billion), is backed by a 25-year power purchase agreement (PPA) with Egypt’s state-run Electricity Transmission Company.
ACWA Power aims to reach financial close on the project by next year, pending the completion of environmental studies.
This initiative follows a similar project, with the company securing a 20-year senior debt deal worth SAR 2.63 billion ($703 million) in December 2024 to fund a 1.1GW wind farm in Egypt’s Suez governorate.
Both projects are part of Egypt’s Nexus of Water, Food, & Energy initiative, which aims to develop 10GW of renewable energy capacity.
The company has also made significant strides in solar energy, already operating five solar projects in Upper Egypt with a combined investment of around $2 billion.
CEO Marco Arcelli stated that while ACWA Power remains open to acquisitions in new markets, its primary focus remains on strengthening its presence in Egypt, Morocco, and South Africa, investing in regions with the most rapid growth opportunities.
Shares of ACWA Power, in which Saudi Arabia’s Public Investment Fund (PIF) holds a 44% stake, closed at SAR 392 on Tuesday, reflecting a 3% decline since the beginning of the year.
In a separate development, ACWA Power has revealed plans to acquire $693 million worth of energy and water assets in Kuwait and Bahrain from French energy company Engie.
This deal includes 4.6GW of gas-fired power generation capacity, 1.11 million cubic meters per day of water desalination capacity, and related operations and maintenance companies in both countries.
As part of the deal, ACWA Power will acquire stakes in Kuwait’s Az Zour North, Bahrain’s Al Ezzel and Al Dur projects, and the Al Hidd facility.
