EGYPT: Masdar, Hassan Allam and Infinity secure land for 10 GW wind farm
A consortium comprising Masdar, Infinity Power and Hassan Allam Utilities has signed an agreement with the Egyptian government for the construction of a 10,000 MW mega wind farm. The three partners have obtained the land needed to build this infrastructure, which will require an investment of $10 billion.
A mega wind farm is to be built in Egypt. This is the project of a consortium formed by the Emirati energy company Masdar, Hassan Allam Utilities, the subsidiary of the Egyptian group Hassan Allam Holding, and Infinity Power, a joint venture between the Egyptian company Infinity Energy and Masdar. The three companies have just secured land for a 10 GW wind farm. To date, this is the largest renewable energy project announced in the North African country.
Like most of the Independent Power Producers (IPPs) investing in wind power in Egypt, the consortium is set to locate its wind farm in the Gulf of Suez, an area that is not only boasted to be rich in natural resources, but also very popular with birds. In fact, the Gulf of Suez is located on the migratory route of certain large birds that leave Europe to spend the winter in Africa, mainly in the Great Lakes region. The implementation of a project as massive as Masdar should therefore take into account the environmental impact.
A boon for Egypt’s energy transition
Some of the energy companies already investing in this part of Egypt are banking on demand-side shutdown programmes. This involves stopping the rotation of wind turbines during the passage of migratory birds. In any case, Masdar, Infinity and Hassan Allam are expected to invest no less than 10 billion dollars in the construction of their wind farm, which will be capable of producing 47,790 GWh of electricity per year.
The wind farm is also expected to reduce Egypt’s annual emissions by around 9% by displacing 23.8 million tonnes of carbon dioxide (CO2) per year. At the same time, the installation should enable the country of the pharaohs to save at least 5 billion dollars a year in the cost of natural gas, which Egypt uses to produce almost 60% of its electricity. The 10,000 MW wind farm will also help Egypt achieve its strategic goal of obtaining 42% of its energy from renewable sources by 2030.
In addition to the Masdar-led consortium, other renewable energy producers are developing large-scale wind projects in Egypt. Saudi Arabia’s Acwa Power is planning to build a 1,100 MW wind farm by 2026. For its part, France’s Engie, which already operates a 262.5 MW wind farm in the Gulf of Suez, is building a second 500 MW farm and plans to deploy 3,000 MW of capacity over the next few years, with its partners Orascom Construction, Toyota Tsusho Corporation and Eurus Energy.