Engie, a leading player in the renewable energy sector, is significantly increasing the total capacity of its flagship Red Sea Wind Energy wind farm project located in Ras Ghareb, Egypt. The capacity will be expanded from 500 megawatts to an impressive 650 megawatts, making it the largest wind farm of its kind in Africa.
This strategic expansion is a part of Engie’s continuous commitment to bolster renewable energy initiatives globally and position itself as a leader in the energy transition. The under-construction project entails a comprehensive 25-year power purchase agreement with the Egyptian Electricity Transmission Company.
Under this agreement, the Egyptian Electricity Transmission Company will acquire the entirety of the wind farm’s production, enhancing the collaboration between public and private sectors in meeting energy demands. An initial phase has already connected 306 megawatts of the wind farm's capacity to Egypt's national grid, with its completion ahead of schedule, and the full commissioning anticipated in the third quarter of 2025. With the enhanced capacity, Engie’s total wind power capacity in Egypt will reach approximately 912.5 megawatts.
This substantial growth will not only strengthen Engie’s position as a leader in renewable energy development within both Africa and the Middle East, but will also serve a vital role in meeting rising energy demands within the region. The Red Sea Wind Energy project is poised to power over 1 million homes and is projected to achieve a significant reduction in carbon dioxide emissions, amounting to around 1.3 million tons annually once it becomes fully operational.
This aligns seamlessly with Egypt's ambitious target of sourcing 42% of its electricity requirement from renewable energy sources by the year 2030. "Once completed in 2025, Red Sea Wind Energy will stand as one of the largest onshore wind facilities in Engie's global portfolio, contributing significantly to the Egyptian government's aspirations to transition to a low-carbon economy,” stated Paulo Almirante, who serves as the senior executive vice president for renewables and energy management at Engie. Engie retains a 35% stake in this large-scale renewable project, while Orascom Construction maintains a 25% interest.
Additionally, Toyota Tsusho and Eurus Energy hold a 20% stake each in the venture. On a related note, Engie’s shares experienced a slight decline in Paris midmorning on Friday..