Germany recently signed an agreement to support Egypt’s wind farm project worth €86 million ($97.4 million), targeting the interconnection of ACWA Power 1 and 2 wind farms, supporting Egypt’s ambitious renewable energy goals.
This includes €54 million ($61.1 million) in concessional financing and €32 million ($36.2 million) in grant support, aimed at integrating 1,100 megawatts of wind energy into Egypt’s national grid under the “Noufi” green investment program, launched in 2022.
The agreements were signed by Egypt’s Minister of International Cooperation, Rania Al-Mashat, and Ambassador to Egypt, Jürgen Schulz, and Egypt’s Minister of Electricity and Renewable Energy, Mahmoud Esmat, was also in attendance.
As part of the broader cooperation, the two countries also signed a debt swap agreement involving the Central Bank of Egypt and the Ministry of Electricity and Renewable Energy, aimed at improving the sustainable energy supply.
This brings the total value of debt swap instalments between Egypt and Germany to €297 million (about $338 million).
“Egypt has undergone a comprehensive infrastructure overhaul and enacted legislative reforms to attract private sector and international investment in electricity and renewable energy, particularly in the renewable energy sector, making Egypt one of the most attractive destinations for investment in this sector,” said Minister of Electricity and Renewable Energy, Mahmoud Esmat
More on the wind farm projects
The ACWA Power wind farms, located in the Gulf of Suez, represent Egypt’s strategy to achieve 42% renewable energy by 2030.
In 2024, Egypt secured $275 million in financing for the construction and operation of Africa’s largest wind farm.
The Egyptian Electricity Transmission Company (EETC) will serve as the sole off-taker under a 25-year power purchase agreement, ensuring a stable energy supply to over one million households, according to the ACWA Power Report.
The wind farms will deploy 138 turbines supplied by China’s Envision Energy, each with a capacity of approximately 8 MW and a tip height of 220 meters, among the tallest in the Gulf of Suez.
These state-of-the-art turbines optimize land use and energy output, generating an estimated 4.3 terawatt-hours, according to the Enerdata Report.
In January 2025, the OPEC Fund for International Development invested $30 million in the construction of two wind farms in partnership with ACWA Power.
These projects will contribute to eliminating 1.1 million tonnes of carbon dioxide annually, significantly reducing Egypt’s reliance on thermal power generation, which currently dominates its energy mix, according to the ACWA Power Report.
German Ambassador Schulz stated, “Egypt is an important partner for Germany in achieving global climate goals. This is why Germany supports Egypt with expertise and funding in its strategic investments for the future, especially in the expansion of renewable energy.”
“From the very beginning, Germany has supported Egypt’s climate initiative NWFE as its largest bilateral partner, with assistance amounting to approximately EGP 15 billion ($301 million). The projects referred to in the agreement signed by us today will make it possible to supply more than 2.5 million households with green electricity,” Schulz added.
