In one of Egypt’s long‑anticipated privatization deals, UAE‑based Alcazar Energy signed a $420 million agreement with the government to operate, manage, maintain, and upgrade the 580‑megawatt Jabal El‑Zeit wind farm on the Red Sea, a cabinet statement said.

The deal, which can be classified as a management privatization, also includes a Power Purchase Agreement under which the Egyptian Electricity Transmission Company will buy the farm’s output throughout the contract period. The statement did not specify the duration of the agreement or the currency in which payments will be made.

As per the deal, which comes in alignment with Egypt’s state ownership policy and national energy strategy,  Alcazar will invest, operate, and manage the wind farm through a project company established under Egyptian law.

The  $420 million is to be financed “from external sources as part of Egypt’s drive to attract more foreign capital”, said the statement. Under the agreement, Alcazar,a leading independent investor in renewable energy across growth markets, will assume responsibility for operating, managing, and maintaining the Jabal El‑Zeit wind farm to ensure continuous performance at the highest standards.

The deal also stipulates upgrades and efficiency improvements to boost output, with a binding commitment to maintain the plant’s installed capacity at no less than 580 megawatts throughout the contract period.

The deal was signed by Alcazar on one side and the New and Renewable Energy Authority alongside the Egyptian Electricity Transmission Company on the other side in the presence of  Prime Minister Mostafa Madbouly and Electricity Minister Mahmoud Esmat, and Minister of Investment Mohamed Farid.

The partnership is a model of private‑sector engagement in renewable energy, reinforcing Egypt’s target of raising renewables to 45 % of the energy mix within two years, noted the statement.

Esmat highlighted the government’s focus on maximizing returns from state assets and attracting foreign investment, while Farid stressed that the deal reflects Egypt’s commitment to expanding private ownership, strengthening governance, and boosting investor confidence.

The Sovereign Fund of Egypt played a central role in structuring the transaction, which drew one of the world’s leading renewable energy firms under a balanced contractual framework, noted the statement.

Gabal El‑Zeit, together with the state‑owned 545‑MW Zafarana wind farm, was among 32 companies and assets placed on Egypt’s privatization list in 2023. The projects have drawn strong investor interest, including Saudi Arabia’s ACWA Power, the UK-based private equity giant Actis and Infinity, the local renewables company.