Saudi Arabia’s Acwa Power has announced plans to build, own, and operate a 2-gigawatt (GW) wind power generation plant in South Hurghada, Egypt. The project, worth SAR8.6 billion ($2.3 billion), is expected to generate enough power to supply nearly 2 million homes.
Acwa Power, listed on the Saudi stock exchange, has signed a 25-year power purchase agreement (PPA) with the state-run Egyptian Electricity Transmission Company to support the development of this major renewable energy initiative. Financial closure for the project is anticipated after the completion of environmental studies in 2026.
In addition, Acwa Power signed a 20-year senior debt agreement worth SAR2.63 billion ($703 million) in December 2024 to fund a separate 1.1GW wind power plant in the Suez governorate. Both projects are part of Egypt’s Nexus of Water, Food & Energy program, which includes a renewable energy target of 10GW.
Acwa Power, which currently manages five solar projects in Upper Egypt with a combined investment of around $2 billion, continues to expand its renewable energy portfolio. CEO Marco Arcelli has stated that the company is keen to explore additional opportunities in photovoltaic solar power while also focusing on consolidating its presence in key markets such as Egypt, Morocco, and South Africa.
The company, 44% owned by Saudi Arabia’s Public Investment Fund (PIF), also announced a deal to acquire stakes in assets in Kuwait and Bahrain. The $693 million transaction, which involves purchasing operating capacities of 4.6GW of gas-fired power and 1.11 million cubic meters per day of water desalination capacity, will strengthen Acwa Power’s regional footprint. The deal includes stakes in the Az Zour North project in Kuwait and the Al Ezzel, Al Dur, and Al Hidd projects in Bahrain.
