French energy giant Engie has reported that it has completed the largest wind farm in Africa four months ahead of schedule. The Red Sea Wind Energy project in Egypt represents a new future for the North African nation, as it attempts to transition away from the coal and gas sectors that have dominated the energy sector in the country over the past few years. The MENA region, which is a consortium of Middle East and North African nations, aims to end the reliance on the fossil fuels sector that has ravaged nearly every corner of the globe.
French energy utility Engie is stepping up its focus on renewable energy growth in the MENA region
The world has become acutely aware of the need to foster the transition away from fossil fuels in favor of the renewable energy sector. The MENA region, which consists of several nations that are net-importers of oil and gas reserves, such as Egypt, is attempting to fast-track the adoption of the renewable energy sector.
The news that French utility company Engie has completed the construction of the huge 650 megawatt Red Sea Wind Energy project four months ahead of schedule has been praised by industry insiders.
The project will deliver power to more than one million households annually and arrives at a critical juncture for the iconic African nation, as Egypt now spends billions on liquefied natural gas to address electricity shortages, making it a net gas importer for the first time in 2023.
While Engie holds a majority ownership in the project with 35%, Orascom Construction PLC holds 25%, and Japan’s Toyota Tsusho Corporation and Eurus Energy Holdings Corporation share the remaining 40%. MENA’s leadership has praised the completion of the site ahead of schedule.
“This renewable energy is cheaper than burning gas or other fossil fuels. It helps Egypt burn less gas and import less or export more,” – François Xavier Boul, Engie’s Managing Director for the Middle East and Africa
Engie plans to ramp up operations in the Middle East and North African region
Engie has already cemented its presence in the MENA region. The Red Sea Wind Energy project is the second project of its kind that the energy utility has constructed in Egypt, with plans for another site under development that will exceed 900MW.
The company recently signed a preliminary agreement with phosphate giant OCP in Morocco to explore green hydrogen, ammonia, and renewable energy projects starting in 2026, further strengthening its presence in the region.
According to Engie’s Managing Director for the Middle East and Africa, François Xavier Boul, several factors have raised the interest in investing in nations like Egypt, including:
- Strong economic growth
- rising energy demand
- streamlined permitting
- short lead times
As the nations of the world auction off massive wind farms, the energy sector has embraced the need to balance the integration of renewable energy generation with the need to phase out the conventional energy sector while keeping employment in mind. The renewable energy industry is fast becoming the most dominant force in the global energy sector.
Egypt can now become a global leader in the implementation of the renewable energy sector
As the world’s nations face the existential crisis that the climate has presented, the overarching conclusion is that the biggest nations of the world need to do more to integrate the renewable energy sector into their national grids. Several European nations have seen tremendous demand for renewable energy projects in recent months and have welcomed the warm embrace that the sector presents. For far too long, countries with significant natural resources have relied on importing energy capacity to meet power demands, while neglecting the potential right in their own nations.
