UAE’s Kazar to invest $2.5B in hybrid renewable power plant in Egypt
Updated 12/25/2024 7:47:00 AM
Arab Finance: Emirati investment firm Kazar plans to invest $2.5 billion in constructing a hybrid renewable energy station in Egypt’s Zafarana region, east of the country, Asharq Business reported, citing an anonymous source in the know.
The project, agreed upon with the Egyptian government, will have a capacity of 3.1 gigawatts.
The station will combine 2 gigawatts of solar energy and 1.1 gigawatts of wind energy.
The build-operate-own (BOO) model will govern its implementation, with Kazar handling construction and operation.
The state-owned Egyptian Electricity Transmission Company (EETC) will purchase the energy generated by the station.
The project is set to replace the aging Zafarana Wind Farm, one of Africa’s largest wind farms, which has reached the end of its operational life.
The Zafarana site spans 120 square kilometers, houses 700 turbines, and currently produces 545 megawatts of electricity.
Energy from the new hybrid station will be purchased at competitive rates, averaging 2 cents per kilowatt-hour (kWh) for solar energy and 3 cents per kWh for wind energy.
The Emirati company expects to finalize project studies and financial arrangements by the end of 2025, with on-site work starting in early 2026.
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