Worth $5 billion.. An agreement to establish a wind power plant in Sohag

President Abdel Fattah El-Sisi issued Decision No. 62 of 2023 approving the mutual letter between the government of the Arab Republic of Egypt and the government of Japan regarding the loan provided through the Japan International Cooperation Agency (JICA) in the amount of 41 billion Japanese yen.

This step come to implement the first phase of Line 4 of the Greater Cairo Metro "Terrain Two", which will be located in Cairo on December 26, 2022.

Renewable Energy

In another side, Today, Prime Minister Dr. Mostafa Madbouly witnessed, at the Cabinet headquarters in the New Administrative Capital, the signing ceremony of an agreement between the Ministry of Electricity and Renewable Energy, represented by the New and Renewable Energy Development and Use Authority, and the Norwegian company Scatec ASA. 

Allocate plot of land

The agreement provide to allocate plot of land for the construction of a wind power plant project with a production capacity of 5 gigawatts, in West Sohag, at an investment cost of $5 billion.

According to the agreement, the wind power plant to be built in West Sohag will produce 5 gigawatts of electricity annually, and the project contributes to achieving Egypt's goal of renewable energy making up 42% of the country's energy mix by 2030.

Ambitious program

Dr. Mostafa Madbouly, Prime Minister, affirmed that the Egyptian state, under the leadership of His Excellency President Abdel Fattah El-Sisi, is striving to strengthen national plans to increase the capabilities of renewable energy and maximize its value, in order to diversify energy supply sources for the industrial, agricultural and urban development process in Egypt.

Dr. Mohamed Shaker, Minister of Electricity and Renewable Energy, stated that the Egyptian state has adopted an ambitious program to advance the Egyptian electricity sector in various fields, foremost of which is maximizing the exploitation of new and renewable energy resources and encouraging investment in this field, which would contribute to reducing dependence on fossil fuels, while continuing to reduce.

This is in line with the energy strategy of the Arab Republic of Egypt to reach the percentage of renewable energy sources in the energy mix up to 42% by 2030, in addition to its integration with the National Climate Strategy 2050, to ensure facing the challenges of climate change and achieving sustainable economic growth.

Foreign direct investment

The Minister of Electricity added that this project confirms the ability of renewable energy in Egypt to attract foreign direct investment, pointing to Egypt's comparative advantages in terms of providing the lands needed to produce a huge volume of electricity from renewable energies.

He explained that Egypt's geographical location enables it to export green energy to Europe, based on what the Egyptian state has done to support and raise the efficiency of the national electricity grid.

Meanwhile, Terje Belskog said that the plant, to be located in West Sohag, will be one of the largest wind farms in Egypt and Africa, and will contribute to achieving the Egyptian government's goals of doubling the proportion of renewable energies in the energy mix.

He explained that the project will provide about 8,000 job opportunities during the construction period, while providing about 300 permanent jobs.

Solar energy

  This comes after the success of "Scatec" in implementing 6 solar energy stations within the Benban solar energy project, which is the largest direct foreign investment project in solar energy in Egypt.