Egypt has moved to strengthen its renewable energy ambitions by signing a memorandum of understanding (MoU) with China’s SANY Renewable Energy to establish the country’s first wind turbine manufacturing facility and develop a 2,000-megawatt wind power project in the Gulf of Suez.
The agreement was signed on Wednesday during a ceremony attended by Prime Minister Mostafa Madbouly and Minister of Electricity and Renewable Energy Mahmoud Esmat at the Cabinet headquarters in Egypt’s New Administrative Capital. The deal brings together China’s SANY Renewable Energy, the Egyptian Electricity Transmission Company (EETC), and the New and Renewable Energy Authority (NREA).
Under the agreement, Egypt will establish its first wind turbine manufacturing plant, aimed at supplying equipment for domestic renewable energy projects while also exporting surplus production to regional markets. The MoU also includes the development of a 2,000MW wind farm in the Gulf of Suez, with financing arranged in local currency.
The initiative supports Egypt’s strategy to increase the share of renewable energy in its electricity mix to 45 percent over the next two years. It also aligns with broader government efforts to localize advanced industries, boost domestic manufacturing, facilitate technology transfer, and position Egypt as a regional hub for renewable energy equipment serving Africa and the Middle East.
The memorandum was signed by SANY Renewable Energy Chairman Li Qiang, EETC Chairperson Mona Rizq, and NREA CEO Ehab Ismail.
Speaking at the event, Madbouly emphasized the importance of renewable energy projects in diversifying Egypt’s energy sources and supporting long-term development of the electricity sector. He said localizing renewable energy-related industries would enhance energy security, accelerate the country’s transition to cleaner energy sources, and maximize the economic benefits of green investments.
The prime minister noted that President Abdel Fattah al-Sisi closely follows the progress of renewable energy initiatives, highlighting the government’s commitment to strengthening partnerships between public institutions and private-sector investors. He added that Egypt is also expanding investments in energy storage systems to improve grid reliability and increase renewable energy integration.
Esmat said the expansion of local electrical equipment manufacturing, particularly components used in renewable energy projects, is a key pillar of Egypt’s clean energy strategy. He revealed that regulations governing local-content requirements for renewable energy projects are currently being finalized.
According to the minister, the planned manufacturing facility will have an annual production capacity of 2GW and is expected to be completed within two years of finalizing contractual agreements. The 2,000MW wind farm is scheduled to begin supplying electricity to the national grid within 23 months of contract signing.
Esmat added that Egypt’s strategic location, growing renewable energy sector, and extensive network of trade agreements provide a strong foundation for the country to emerge as a regional manufacturing center for clean energy technologies.
