June 22 (Renewables Now) - A consortium led by Saudi Arabia's ACWA Power (TADAWUL:2082) will develop a 1.1-GW onshore wind project in Egypt's Gulf of Suez and Gabal el Zeit area.

The project, which will be the largest wind farm in the Middle East, has an investment value of USD 1.5 billion (EUR 1.42bn), ACWA Power said on Tuesday.

An agreement for the initiative was signed at a ceremony in Cairo attended by top officials from the Egyptian government and ACWA Power's chairman Mohammad Abunayyan.

During the development phase, ACWA Power will partner with Egypt-based engineering and construction company Hassan Allam Holding to conduct site studies and secure financing.

Once completely operational by the end of 2026, the wind park will offset 2.4 million tonnes of carbon emissions per year and supply 1.08 million households with clean power.

The large-scale wind farm will support the Egyptian government’s strategy to diversify its energy sources and leverage the country’s renewable energy resources in a bid to raise the share of renewables to up to 42% by 2035.

The project is expected to reach a financial close by the third quarter of 2024.

The 1.1-GW wind park is ACWA Power’s third project in the North African country after the 120-MW Ben Ban solar park in the Aswan region and the 200-MW Kom Ombo solar plant.

(USD 1 = EUR 0.948)

Choose your newsletter by Renewables Now. Join for free!