Egypt has signed a 25-year power purchase agreement (PPA) with UAE-based Alcazar Energy for a new 407MW wind farm in the Zafarana wind zone on the Gulf of Suez, marking a fresh investment in one of the country’s established wind power regions. The project will be developed under a Build-Own-Operate (BOO) model, with Alcazar Energy responsible for financing, constructing, owning and operating the wind farm. The Egyptian Electricity Transmission Company (EETC) will purchase the electricity under the long-term PPA, with commercial operations targeted for 2028.
The project also forms part of efforts to modernise the ageing Zafarana wind complex, where older turbines can be replaced with newer, higher-capacity technology. Repowering the area allows Egypt to make greater use of an established wind resource and existing power infrastructure while increasing renewable electricity generation.
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The 407MW project adds to a broader UAE-backed renewable investment push in the Gulf of Suez. Alcazar Energy is also involved in the 580MW Gabal El-Zeit wind project, while wider plans for the Zafarana area include wind, solar, battery storage and green hydrogen developments, reflecting Egypt’s ambition to develop the corridor into a major clean-energy hub.
For Egypt, the investment comes as the country seeks to expand renewable generation, modernise its power infrastructure and reduce reliance on conventional generation. For private investors, the 25-year PPA provides a long-term revenue framework, making the project part of a growing pipeline of utility-scale renewable projects being developed through private capital.
