Scatec secures land to build 5GW wind farm in Egypt at US$5Bn

Norwegian renewable energy independent power producer, Scatec ASA, has signed a landmark agreement with the Ministry of Electricity and Renewable Energy in Egypt for the development of a 5 gigawatts (GW) wind energy power plant, at an estimated cost of US$5 billion. 

The deal was signed last week at a ceremony attended by Egypt’s Prime Minister Mostafa Madbouly, Electricity Minister Mohamed Shaker, and Norway’s ambassador in Cairo Hilde Klemetsdal.

The wind farm will be located in the city of Sohag, and will help contribute to the North African country’s target to meet 42% of its energy required from renewable energy sources by 2030.

“It will contribute to the achievement of the goals of the Egyptian government with regard to doubling renewable energy contribution to its energy mix,” said Terje Pilskog, CEO of Scatec.

Wind energy rally in Egypt

The wind energy project adds to a growing number of projects Scatec has done in Egypt. The company built six solar power plants at Benban Solar Park located in Aswan.

Egypt’s New and Renewable Energy Authority also signed an agreement with Scatec to provide land for the wind energy project.

The mega wind energy project is expected to create 8,000 jobs during the construction period, and provide 300 permanent jobs after completion. Once completed, the facility will be one of Egypt’s largest wind farm. The largest wind farm in Egypt currently is the 545MW Zafarana wind energy facility located in the Red Sea Governorate.

In addition to the wind energy project, Scatec is planning to build a green methanol production plant in Egypt’s Damietta province, and is planning to build a green hydrogen production plant in the Red Sea city of Ain Sokhna.

Investment in wind energy is growing in Egypt. The North African country has recently penned agreements with Emirati-owned Masdar and Saudi-owned ACWA Power to develop two separate mega wind farms at 10GW each.