Emirati investment firm Kazar has committed to a $2.5 billion investment in a major hybrid renewable energy project in Egypt. Located in the Zafarana region, this ambitious initiative aims to generate a total of 3.1 gigawatts (GW) of power, combining both solar and wind energy.
The project, which will be a key component of Egypt’s expanding renewable energy infrastructure, is expected to include 2 GW of solar power capacity and 1.1 GW of wind power capacity. The new hybrid plant will replace the existing Zafarana Wind Farm, one of Africa’s largest wind farms, which currently produces 545 megawatts from its 700 turbines. The new hybrid facility will offer significantly higher capacity, marking a substantial step toward Egypt’s renewable energy goals.
The plant will operate under a Build-Operate-Own (BOO) model, where Kazar is responsible for both the construction and ongoing operation. The Egyptian Electricity Transmission Company (EETC) will purchase the power generated by the facility, ensuring a stable market for the energy produced. Notably, the cost of electricity will be highly competitive, with solar power priced at 2 cents per kilowatt-hour (kWh) and wind power at 3 cents per kWh. This pricing strategy is designed to keep energy costs low, contributing to the economic feasibility of the project.
Construction is set to begin in early 2026, following the completion of feasibility studies and the finalization of financial arrangements, which Kazar aims to wrap up by late 2025. This investment is a key part of Egypt’s strategy to diversify its energy sources and reduce reliance on fossil fuels, aligning with both economic goals and global sustainability efforts.
In addition to advancing Egypt’s renewable energy capacity, the project also strengthens economic ties between Egypt and the UAE, fostering cross-border collaboration in the energy sector. The Kazar hybrid plant is poised to play a pivotal role in helping Egypt meet its ambitious renewable energy targets, while supporting sustainable development in the region.
This project reflects a growing trend of significant international investments in Egypt’s energy sector, which is undergoing rapid transformation as the country seeks to meet its climate goals and expand its renewable energy footprint.
