Alcazar Energy signs deal for Egypt's first privatised renewable energy asset

Prime Highlights-

Alcazar Energy Partners signed terms to acquire the 580MW Gabal El Zeit Wind Project in Egypt, the first strategic renewable energy asset offered under the government’s privatisation framework.
The project generates up to 2.4 terawatt-hours of clean electricity annually and cuts more than 1.1 million tonnes of carbon dioxide equivalent emissions each year.

Key Facts-

Alcazar Energy Partners will sell electricity from the project to the Egyptian Electricity Transmission Company under a 25-year power purchase agreement.
The acquisition, alongside the 500MW NIAT Wind project, is expected to bring close to $1 billion in capital into Egypt’s clean energy sector.

Background-

Alcazar Energy Partners signed acquisition terms with Egypt’s New and Renewable Energy Authority for the 580MW Gabal El Zeit Wind Project in the Red Sea Governorate, marking the first strategic renewable energy asset offered under the country’s privatisation framework.

The Gabal El Zeit complex runs three operational wind farms with a combined installed capacity of 580MW. The farms use Siemens Gamesa turbines and have been running for eight to ten years.

Under the deal, Alcazar Energy Partners will take full operational control, extend the project’s lifespan and sell electricity to the Egyptian Electricity Transmission Company through a 25-year power purchase agreement.

The project sits in the Gulf of Suez, one of the world’s most productive wind corridors. It generates up to 2.4 terawatt-hours of clean electricity each year, cuts more than 1.1 million tonnes of carbon dioxide equivalent emissions annually and produces enough power to supply over 300,000 homes.

The deal fits into Egypt’s broader goal of raising renewable energy’s share of electricity generation to 45 percent by 2028. It also aligns with the country’s IMF-backed economic reform programme, which seeks greater private sector involvement in key industries.

Daniel Calderon, Co-founder and Managing Partner of Alcazar Energy Partners, said the acquisition, combined with the company’s 500MW NIAT Wind project, will help bring close to $1 billion in capital into Egypt’s clean energy sector over the coming months.

Alcazar Energy Partners has operated in Egypt since 2014. The company was the largest equity investor in the Benban Solar Park and in November 2024 agreed to develop a 2GW onshore wind platform in the country. The Gabal El Zeit deal adds a major operational asset to its growing regional portfolio.