Alcazar Energy, a sustainable infrastructure fund manager, has signed a $420 million investment, operations, and power purchase agreement to expand and manage Egypt’s 580-megawatt Gabal El Zeit wind farm, marking another step in the country’s push to scale up renewable energy capacity along the Red Sea corridor.

The agreement, formalized in the presence of Prime Minister Mostafa Madbouly, grants Alcazar Energy rights to invest in, operate, and upgrade the strategic wind asset through a locally incorporated project company governed under Egyptian law.

Funding will be sourced through external financing channels, underscoring continued global appetite for large-scale renewable energy infrastructure in North Africa.

The deal was signed by Alcazar Managing Director Daniel Calderon alongside senior officials from the New and Renewable Energy Authority and the Egyptian Electricity Transmission Company (EETC), reinforcing the state’s coordinated approach to energy sector reform.

Strategic asset in Egypt’s energy transition

The Gabal El Zeit facility, located on Egypt’s wind-rich Red Sea coast, remains one of the country’s flagship renewable assets. Under the agreement, Alcazar Energy will oversee technical operations, maintenance, and future upgrades aimed at optimizing output while preserving a minimum installed capacity of 580 MW throughout the contract lifecycle.

The EETC will continue as the sole off-taker, purchasing generated electricity under a structured power purchase agreement framework that supports long-term revenue stability for investors while securing grid supply for Egypt’s growing economy.

Policy push for private capital

The transaction aligns with Egypt’s National Energy Strategy, which targets raising renewable energy’s share in the national mix to 45% within the next two years. It also reflects broader reforms under the State Ownership Policy Document, designed to improve asset efficiency and unlock value from state-linked infrastructure.

Energy Minister Mahmoud Esmat said the government is increasingly leaning on private sector participation in renewable energy and battery storage development, positioning Egypt as a regional clean energy hub.

Investment Minister Mohamed Farid added that the deal reinforces investor confidence and demonstrates progress in expanding the role of strategic foreign partners in state asset development.

Scaling renewable infrastructure

Alcazar Energy is a Luxembourg-headquartered sustainable infrastructure fund manager with advisory operations in Dubai, focused on utility-scale renewable energy investments across emerging markets.

Founded in 2014, the firm develops and operates onshore wind and solar PV projects across the Middle East, North Africa, Turkey (MENAT), and the Balkans. It deploys capital through structured investment vehicles, including AEP-I, which raised $750 million, and AEP-II, which closed at $490 million.

The firm targets about $2 billion in foreign direct investment to scale clean energy infrastructure, positioning itself at the center of the global energy transition and climate finance ecosystem.