Egypt’s 900-megawatt Shadwan Wind Power project is attracting up to $100 million in proposed financing from the World Bank private investment arm, International Finance Corporation (IFC), as the country advances one of its largest new renewable energy developments.

The greenfield wind farm, being developed by Scatec in Ras Shukeir, Red Sea Governorate, is expected to cost about $700 million and will supply electricity to Egypt’s national grid under a 25-year power purchase agreement with the Egyptian Electricity Transmission Company.

900MW wind farm to rise in Ras Shukeir

The project, being developed by Shadwan Wind Power S.A.E., an Egyptian special purpose vehicle owned by Norwegian renewable energy company Scatec ASA, is designed to expand Egypt’s wind power capacity, reduce reliance on carbon-intensive electricity generation and support the country’s climate commitments.

The Shadwan project is located in Ras Shukeir in Egypt’s Red Sea Governorate, approximately 22 kilometres southwest of Ras Ghareb and 10 kilometres northwest of Wadi Dara.

The development will occupy about 90 square kilometres within a 350-square-kilometre area designated by the Egyptian government for renewable energy development under Presidential Decree No. 628 of 2024.

The wind farm will comprise 83 turbines, supported by internal roads, turbine foundations, underground cabling, an onsite substation and operations and maintenance facilities.

A 45-kilometre, 500-kilovolt overhead transmission line will connect the Shadwan substation to the S4 Gharb Bakr substation and ultimately the national electricity grid. Early construction works began in June 2026, with commercial operations expected to begin with 242MW by November 2027 before reaching the full 900MW capacity by April 2028.

Project targets 2,000 construction jobs

The development is expected to create approximately 2,000 jobs at peak construction, including about 300 skilled and 1,700 semi-skilled and unskilled positions.

During operations, the workforce is expected to fall substantially, with approximately 100 workers required to operate and maintain the facility over 25 years.

The project is being delivered under a turnkey engineering, procurement and construction agreement, with Envision supplying the wind turbines, Orascom handling balance-of-plant works and Siemens/Arcon responsible for substation works.

Bird risks drive environmental scrutiny

The IFC has classified the project as Category A due to potentially significant and diverse environmental and social risks, particularly to biodiversity, cumulative impacts, labour, community safety, and the associated transmission line.

The site lies within the Red Sea flyway, an important migration corridor for soaring birds. The project has been identified as critical habitat for the Steppe Eagle and White Stork, while several other bird and bat species have also been identified as priority biodiversity values.

To mitigate these risks, Scatec plans to implement radar-assisted turbine shutdowns during bird migration, bird-flight diverters along the transmission line and post-construction fatality monitoring. The project will also undertake biodiversity offsets intended to achieve no net loss or net gain outcomes where required.

Wind project expected to cut emissions

The Shadwan wind farm is expected to displace approximately 1.2 million tonnes of carbon dioxide emissions annually by replacing more carbon-intensive electricity generation.

Beyond climate benefits, the project is expected to strengthen Egypt’s electricity mix, improve generation-cost efficiency and support the country’s broader renewable-energy expansion.

The IFC’s environmental and social review, disclosed on August 28, 2026, identified additional requirements covering worker accommodation, local recruitment, occupational safety, water management, waste disposal, traffic, security, emergency response and stakeholder engagement before the project can fully align with IFC Performance Standards.