SHARM EL SHEIKH, Egypt — ACWA Power signed a memorandum of understanding with The Sovereign Fund of Egypt to explore a joint investment in the 1.1-GW wind energy project, located in the Gulf of Suez in Egypt.

The memorandum was signed at COP27 in Sharm El Sheikh by Karim Badr, CEO of TSFE Infrastructure & Utilities Subfund; Yasir Mahmoud, executive vice president of business development at ACWA Power; and Hassan Amin, country director for Egypt at ACWA Power in the presence of Egypt Electricity Transmission Committee (EETC) delegates, Egypt’s New and Renewable Energy Authority delegates, and other senior executives.

Per the terms, ACWA Power and TSFE will now engage in discussions for TSFE’s Infrastructure & Utilities Subfund to own up to 10% of the project. Currently, project investors include Hassan Allam Holdings, an Egyptian engineering, construction and infrastructure company (25% stake), and ACWA Power. The Oman Investment Authority, the Sultanate’s sovereign wealth fund, recently signed a similar agreement with ACWA Power to have an equity stake of up to 10% of the same facility.

This is the first instance of TSFE investing in ACWA Power’s Egyptian or worldwide portfolio. The company has had a presence in Egypt since 2015 and has developed the 120-MW PV project in Benban as well as a 200-MW PV facility in Kom Ombo — along with Suez Wind Energy — which will be the largest single contracted wind farm and largest wind-related public-private partnership in Africa to date. Furthermore, ACWA Power also signed a memorandum of understanding to develop another 10-GW wind project with the EETC, which is likely to be developed in phases.

By 2026, the 1.1-GW wind energy project will provide energy to over a million households and displace 2.4 million tonnes of carbon dioxide emissions annually.