PowerChina to build major wind farm in Egypt

Egypt's largest onshore wind power project is to be designed and built by a Chinese company, which is deemed by insiders as a milestone in the country's renewable energy sector and demonstrates the growing global influence of Chinese energy and infrastructure firms.

Power Construction Corp of China (PowerChina) signed an engineering, procurement and construction contract with Suez Wind Energy recently for a 1,100 megawatt wind power project in the country — the largest onshore wind power development in Egypt and the second-largest in Africa, it said.

The project, following PowerChina's earlier 500 MW wind power facility in the region, sets a new record for the company's largest overseas project to date, it said.

"This project is a major step toward Egypt's goal of sourcing 42 percent of its energy from renewables by 2030," said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

"Its scale and expected output, over 4.3 billion kilowatt-hours annually, highlight Egypt's commitment to reducing dependence on fossil fuels and advancing its climate goals under the Paris Agreement."

For PowerChina, the project strengthens its position as a global leader in renewable energy infrastructure, demonstrating the competitiveness of Chinese companies in the global clean energy market, Lin said.

The partnership structure of the project, involving Saudi Arabia-based electric power generation company ACWA Power and financing from the European Bank for Reconstruction and Development (EBRD), also underscores the role of international collaboration in large-scale renewables, he added.

Additionally, the project's impact on carbon emissions, a reduction of 2.2 million metric tons annually — and its provision of clean energy to over a million households — will have more long-term benefits.

The Suez Wind Energy joint venture is co-owned by ACWA Power and consortium partner HAU Energy, a unit of Hassan Allam Utilities. The project will be developed and operated under an independent power producer model, with financing supported by international institutions, including the EBRD.

PowerChina will oversee the project's design, procurement, construction, commissioning, handover and warranty. Once operational, the project is expected to generate over 4.3 billion kWh annually, providing clean and stable energy to more than 1 million households in Egypt. It will reduce carbon dioxide emissions by approximately 2.2 million tons per year, contributing to Egypt's commitments under the Paris Agreement.

zhengxin@chinadaily.com.cn