Egypt launches largest wind farm in Middle East and Africa

A 650 megawatt facility

French energy company Engie has helped facilitate the full commissioning of the Red Sea Wind Energy project in Egypt – currently the largest operational wind farm in the Middle East and Africa (MEA) region.

The 650 megawatt (MW) facility, located near the Gulf of Suez in Ras Ghareb, was brought online in June 2025—four months ahead of schedule—following the completion of a 150 MW expansion phase.

The wind farm – developed as a Build-Own-Operate (BOO) scheme with a 25-year contract – is expected to generate enough electricity from 84 wind turbines to power over one million households and is forecast to reduce Egypt’s annual carbon emissions by approximately 1.3 million tonnes.

The milestone marks a significant step in Egypt’s energy diversification strategy, which aims to generate 42% of the North African country’s electricity from renewable sources by 2035, according to data from the International Renewable Energy Agency.

Engie’s consortium partners in the Red Sea Wind Energy project include Egypt’s Orascom Construction (25%), Japan’s Toyota Tsusho Corporation (20%), and Eurus Energy Holdings (20%). Engie holds a 35% stake in the venture.

Global finance

The project was financed by a group of international lenders, including the Japan Bank for International Cooperation, Sumitomo Mitsui Banking Corporation, the Norinchukin Bank, Société Générale, and the European Bank for Reconstruction and Development. It is backed by insurance from Nippon Export and Investment Insurance.

A long-term power purchase agreement was signed with the Egyptian Electricity Transmission Company, securing 25 years of revenue for the developers. The deal aligns with Egypt’s broader push to attract private sector investment into its energy transition plans, especially in the wind-rich Gulf of Suez region.

The Red Sea Wind Energy project was rolled out in phases. A total of 306 MW was connected to the national grid in December 2024, followed by 194 MW in April 2025, and the final 150 MW in June 2025. Engie said the project recorded over seven million person-hours without a single lost-time injury, underlining a strong health and safety record during construction.

The Red Sea Wind Energy project is expected to generate enough electricity to power over one million households in Egypt. Credit: Eric Seddon

This development adds to Engie’s growing renewable energy footprint in the MEA region. The company now operates nearly one gigawatt of installed wind capacity in Egypt alone. It is also developing a second wind farm in the same area, which is expected to exceed 900 MW once completed.

Speaking on the commissioning of the Red Sea Wind Energy project, Engie Executive Vice President Paulo Almirante said the project reflects the consortium’s ability to deliver utility-scale renewable energy assets efficiently. “With the commissioning of Red Sea Wind Energy, Engie now operates nearly 1 GW of wind power capacity in Egypt,” he said.

Renewable energy focus

Egypt’s growing focus on renewable energy comes as the country looks to stabilise its energy sector and reduce dependency on natural gas, a significant portion of which is currently exported to Europe.

The Egyptian government is also under pressure to meet rising domestic electricity demand, which has been increasing at an annual rate of over 5%, according to the World Bank.

In the broader corporate context, Engie has reported financial results for H1 2025 that show continued investment in renewables. The company reached 52.7 gigawatts (GW) of installed renewable and battery energy storage capacity by the end of June 2025, with a further 8 GW under construction. Its global development pipeline has now grown to 118 GW, reflecting continued demand for clean energy solutions amid volatile energy prices.

While earnings before interest and taxes (EBIT), excluding nuclear operations, fell by 6.4% year-on-year to €5.1 billion due to lower market prices, Engie recorded strong cash generation. Cash flow from operations (CFFO) reached €8.4 billion in the first half of the year, and the group reduced its economic net debt by €1.1 billion to €46.8 billion. Its net debt-to-EBITDA ratio remained steady at 3.1x.

Engie CEO Catherine MacGregor said the group’s diversified operations helped it maintain stability in a turbulent energy landscape. We commissioned the Red Sea Wind Energy park in Egypt. Our diversified geographical footprint is a key asset that provides the necessary flexibility to achieve our goals in the current economic and geopolitical context,” she said.

In the UAE, Engie is pursuing final negotiations on a 1.5 GW solar power purchase agreement and is bidding for a 1.4 GW open-cycle gas turbine (OCGT) project. These initiatives reflect the company’s ambition to strengthen its position in the Arabian Gulf’s rapidly transforming energy market, which is increasingly focused on sustainability targets in line with COP28 commitments.

The Red Sea Wind Energy project sets a benchmark for renewable infrastructure delivery in the region, combining international finance, regional expertise, and alignment with national climate goals. As the Middle East and Africa expand clean energy capacity, large-scale wind projects are expected to play a growing role in the transition.

Hero image: The Red Sea Wind Energy project was rolled out in phases. Credit: Red Sea Wind Energy S.A.E.

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