Masdar to back 200MW Egyptian wind farm project

Masdar is expected to sign a deal later today with the Egyptian government that will see the Abu Dhabi-state owned investment group begin work on plans for one of Africa's largest wind farms.

Reuters reported yesterday that the company has agreed to back plans for a 200MW wind farm to be located near Suez on Egypt's east coast.

"We will sign an agreement tomorrow to establish the first joint Emirati and Egyptian venture," Aktham Aboul Ela, a senior official at the Egyptian Electricity and Energy Ministry, told the news agency.

The Egyptian government has set a target to generate 20 per cent of the country's electricity from renewable sources by 2020, with over half expected to come from wind power – around 7GW in total.

When completed, the new wind farm will increase Egypt's installed wind energy capacity by around 50 per cent from the 430MW that is currently installed.

Egypt is a significant oil and gas producer, but is seen as having huge potential as a provider of wind energy as a result of strong and consistent wind speeds averaging over 9m per second and a stable electricity grid infrastructure.

The deal will further underline Masdar's position as the leading clean tech investor in the Middle East and North Africa. The company recently provided fresh funding to support Abu Dhabi-based solar energy firm Enviromena's plans to expand into North Africa, and has invested heavily in a series of high-profile projects designed to establish the Emirate as a major clean tech hub.

The company is also fast emerging as a major player in the global wind energy sector, having taken a stake in the UK's high-profile London Array offshore wind farm project as well as similar project in the Seychelles.