Saudi Arabia’s energy company and power generator, ACWA Power, signs $1.5B contract with Egypt to build the largest power plant in the Middle East.

As part of the 14 investment agreements recently held between Egypt and Saudi Arabia, ACWA Power signed a deal with Egypt’s Ministry of Electricity and Hassan Allam Holding to build the Middle East’s largest wind farms.

“With sustainable development at the top of the agenda for both states, progress cannot be made without concerted efforts in expanding infrastructure that is underpinned by renewables. This wind project demonstrates a commitment to realising a greener tomorrow, despite global economic volatility, and we look forward to working with like-minded partners for a positive future.” said Mohammad Abunayyan, ACWA Power Chairman.

This wind power plant, which will be located in the Gulf of Suez and Gabal el Zeit area, will be providing 1.1 gigawatts of wind power, generating 1,080,000 Egyptian homes with electricity in turn, as well as reduce the impact of 2.4 million tonnes of carbon dioxide emissions per year.

“This milestone wind project falls within the framework of the Egyptian government’s strategy to diversify its energy sources and leverage the country’s rich natural resources, especially in renewable energy. The Ministry of Electricity and Renewable Energy is taking concrete actions to ensure the resilience of our energy strategy, because of the escalating changes that the world is witnessing, which aim to increase the contribution of renewable energy to up to 42% by 2035.” said Dr. Mohamed Shaker El-Markabi, Egypt’s Minister of Electricity and Renewable Energy.

Read more: An overview on the $7.7b Saudi Egyptian agreements