By: AGBI

Egypt has awarded a contract to Dubai-based Alcazar Energy to manage the 580 megawatt Gabal El Zeit wind farm on the Red Sea coast.

The contract, valued at $420 million, includes investment, operation and power purchase agreements, the Egyptian government said in a statement.

Alcazar will handle technical management, maintenance and upgrade works to increase production capacity throughout the contract period.

The state-owned Egyptian Electricity Transmission Company (EETC) will be the principal power offtaker.

The project is part of the national energy strategy, which seeks to cut dependence on fossil fuels and increase the share of renewables in the country’s energy mix to 45 percent within the next two years.

Last month, China’s Sany Group said it was in advanced talks to build Egypt’s first wind turbine factory.

Cairo has embarked on a drive to expand the use of renewable energy sources following a decline in gas production and oil reserves. Renewable energy capacity stood at about 7 gigawatts at the end of 2025.

In a report last year the government said it would invest EGP136 billion ($2.7 billion) into projects to develop its power and renewable energy sectors during 2025-2026.