UAE’s Kazar to Invest $2.5 Billion in Egypt’s 3.1GW Hybrid Renewable Power Plant

Emirati investment firm Kazar is investing $2.5 billion to build a hybrid renewable energy station in Egypt’s Zafarana region. The project, a collaboration with the Egyptian government, will deliver a total capacity of 3.1 gigawatts—2 GW from solar energy and 1.1 GW from wind energy—making it a key addition to Egypt’s renewable energy infrastructure.

The station will operate under a build-operate-own (BOO) model, with Kazar managing construction and operation, and the Egyptian Electricity Transmission Company (EETC) purchasing the generated power.

“Energy from the hybrid station will be purchased at competitive rates, with solar energy priced at 2 cents per kilowatt-hour (kWh) and wind energy at 3 cents per kWh,” sources stated.

Transforming the Zafarana Wind Farm:

The hybrid station will replace the aging Zafarana Wind Farm, one of Africa’s largest wind farms, which spans 120 square kilometers, houses 700 turbines, and currently produces 545 megawatts.

Timeline and Implementation:

Kazar aims to finalize feasibility studies and financial arrangements by late 2025, with on-site construction commencing in early 2026.

This project represents a significant step forward in Egypt’s commitment to renewable energy, addressing both economic and environmental objectives while fostering cross-border collaboration with the UAE.