Expanding Egypt’s Renewable Energy Portfolio
In a significant development for Egypt’s renewable energy sector, Alcazar Energy has acquired a 100 MW portfolio of solar and wind projects from FAS Energy, the renewable energy arm of Fawaz Alhokair Group. This acquisition marks a major step for Alcazar Energy Partners II (AEP-II), the largest renewable energy fund focused on the Middle East, North Africa, and Eastern Europe.
The acquired projects include a 50 MW solar photovoltaic (PV) plant in Kom Ombo, Aswan Governorate, and a 50 MW wind farm in Ras Ghareb, Suez Governorate. Both are already operational and connected to the electricity grid under the Build, Own, Operate (BOO) scheme. They benefit from 25-year power purchase agreements (PPAs) with the Egyptian Electricity Transmission Company (EETC).
Strengthening Commitment to Egypt’s Energy Goals
Daniel Calderon, CEO of Alcazar Energy, stated that the acquisition underlines the company’s commitment to expanding its presence in Egypt and supporting the nation’s renewable energy goals. He emphasized the transaction’s alignment with Egypt’s Vision 2030, which aims to increase the share of renewable energy in the national energy mix to 42% by 2030.
“These high-quality assets will enable us to accelerate our contribution to Egypt’s ambitious renewable energy targets and our broader mission of driving the energy transition across the region,” Calderon said.
Managed by Alcazar Energy, AEP-II is backed by a diverse range of investors, including regional, European, and global development finance institutions, sovereign wealth funds, and private investors. The fund focuses on mobilizing capital for renewable energy projects across the Middle East, Africa, and Eastern Europe. These projects are crucial as Egypt works to expand its renewable capacity to meet its ambitious targets.
A Strategic Acquisition in the Egyptian Market
The acquisition is part of Alcazar Energy’s broader strategy to expand its portfolio in key markets. The company has a strong track record of developing and operating renewable energy projects across the Middle East and Africa. With this latest addition, Alcazar Energy aims to further consolidate its position as a leading player in the sector.
Alcazar Energy’s focus on Egypt is strategic, given the country’s abundant renewable energy resources and supportive regulatory framework. Egypt is one of the largest markets for renewables in the Middle East, with significant potential for solar and wind projects. The government’s commitment to increasing the share of renewables in the energy mix makes it an attractive destination for investment. Authorities are actively seeking investments in renewable energy projects, including more solar PV and battery storage systems, as seen in recent developments.
The projects acquired by Alcazar Energy are poised to play a crucial role in helping Egypt achieve its renewable energy targets. The 50 MW solar PV plant in Kom Ombo stands as one of the largest solar projects in the country, while the 50 MW wind farm in Ras Ghareb is a key component of Egypt’s extensive wind energy program. This move complements other national initiatives, such as the launch of Egypt’s first solar power plant with integrated battery storage in Sharm El-Sheikh, highlighting a firm commitment to innovative energy solutions PVKnowhow Egypt solar project: 100 MW Breakthrough in Renewable Energy Revolution – PVknowhow.com.
Driving Egypt’s Renewable Energy Future
Alcazar Energy’s acquisition is set to positively impact the local economy by creating jobs and supporting the development of the renewable energy sector. The projects will also contribute to reducing greenhouse gas emissions and improving energy security in Egypt.
The move is also significant for Alcazar Energy’s investors, who are increasingly focused on sustainable and impact-driven investments. By investing in renewable energy projects in Egypt, AEP-II is helping to drive the global energy transition and support a low-carbon economy. This investment comes as Egypt continues to enhance its power generation capacity through substantial infrastructure projects and the incorporation of renewable energy sources. As of 2022, the country’s solar energy capacity reached 1,724 megawatts, supported by government initiatives promoting small-scale solar projects Egypt Solar Panel Manufacturing | Market Insights Report.
Ultimately, this acquisition represents a significant milestone for Alcazar Energy, its investors, and Egypt’s renewable energy sector. As the company continues to expand its portfolio, it is well-positioned to be a leading force in the region’s ongoing energy transition.
