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Thursday, 3 November 2022

More renewables projects are being negotiated in Riyadh

The Electricity Ministry is in talks with six Saudi firms for more than USD 3 bn worth of renewable energy projects as Electricity Minister Mohamed Shaker visits Riyadh, Bloomberg Asharq reports, citing four people at state-owned Egyptian electricity companies.

Who’s involved: The minister is holding talks with ACWA Power, Al Fanar, FAS Energy, and Al Babtain during his visit to the kingdom, the sources said. He is also reportedly meeting with Saudi financing institutions to help drum up investment for the projects.

Work on that blockbuster ACWA wind plant starts next year: Shaker’s visit coincided with the signing of an MoU between ACWA Power and state-owned Egyptian electricity companies to construct a huge 10-GW wind farm which, when completed, will be one of the largest in the world. One source told Asharq that the first phase of the project will have a capacity of 1.1 GW and cost up to USD 1.1 bn. Construction will begin at the beginning of next year and take two years to complete, they added.

Green hydrogen agreements imminent? Agreements for two green hydrogen projects could be signed during Shaker’s visit, one source told Bloomberg Asharq, adding that the framework agreements could be signed during COP27. Cabinet had already told us to expect one green hydrogen agreement to be signed with ACWA Power during Shaker’s visit, among other renewables projects.

Some of these companies already have a presence in Egypt’s renewables sector:

This all comes as part of the government’s drive to reach its ambitious renewable energy target: Egypt is aiming to produce 42% of its energy from renewable sources by 2030, a target announced during last year’s COP26 summit. This is five years earlier than its previous target.

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