The Egyptian Government has finalized an agreement with UAE-based company Alcazar to establish a hybrid power plant in the Zafarana region. This project will combine solar and wind energy with a total capacity of 3.1 gigawatts, representing a major milestone in Egypt’s renewable energy efforts.
Valued at $2.5 billion, the facility will include 2 gigawatts of solar power and 1.1 gigawatts of wind power, according to sources cited by Asharq Bloomberg. The plant will operate under a Build-Own-Operate (BOO) model, with Alcazar overseeing its development and management.
The Egyptian Electricity Transmission Company, a state-owned entity, has agreed to purchase the plant’s energy output at competitive rates of 2 cents per kilowatt-hour for solar energy and 3 cents per kilowatt-hour for wind energy.
The project will be constructed on the site of the existing Zaafarana wind farm, which is no longer operational. Feasibility studies and financial arrangements are expected to conclude by late 2025, with construction scheduled to commence in early 2026. This hybrid power plant is a significant step toward achieving Egypt’s renewable energy targets, showcasing the integration of advanced technologies to provide sustainable and cost-efficient energy solutions for the region.