Egypt and the UAE join forces to develop a $2.5 billion hybrid power plant in Zafarana, a groundbreaking project through the strategic partnership with Alcazar.

The Egyptian government has finalized an agreement with UAE-based company Alcazar to build a 3.1-gigawatt hybrid power plant in the Zafarana region. The project combines solar and wind energy and is valued at $2.5 billion. The plant will have 2 gigawatts of solar power and 1.1 gigawatts of wind power, and will operate under a Build-Own-Operate (BOO) model, with Alcazar responsible for development and management. The Egyptian Electricity Transmission Company will purchase the plant’s energy output at competitive rates, with solar energy priced at 2 cents per kilowatt-hour and wind energy priced at 3 cents per kilowatt-hour. The project will be built on the site of the existing Zaafarana wind farm, which is no longer operational. Construction is expected to begin in early 2026, with feasibility studies and financial arrangements concluding by late 2025. The project is a significant step towards achieving Egypt’s renewable energy targets and showcases the integration of advanced technologies to provide sustainable and cost-efficient energy solutions.