Kazar, a United Arab Emirates-based investment firm, is set to make a significant mark in Egypt’s renewable energy landscape by investing $2.5 billion in a hybrid renewable energy plant in the Zafarana region. This ambitious project, developed in cooperation with the Egyptian government, will deliver a total capacity of 3.1 GW, of which 2 GW will be generated from solar energy and 1.1 GW from wind energy. This is a great leap for Egypt in terms of its efforts to diversify energy resources and decrease carbon footprints.
The new hybrid plant will have a build-operate-own (BOO) model under which Kazar would assume full responsibility for building, operating, and maintaining it. The generated power shall be sold to the EETC at competitive costs of 2 cents for each kWh of solar-generated electricity and 3 cents for each kWh of electricity produced by wind energy, which makes the project financially feasible and affordable for consumers.
Zafarana, the location of the plant, is already a symbol of renewable energy; one of Africa’s largest wind farms is there. Existing Zafarana Wind Farm covers an area of 120 square kilometers, and it hosts 700 turbines, currently producing 545 MW. However, the old wind farm is becoming obsolete and thus needed to be upgraded. The hybrid station developed by Kazar will thus take over the place of the older facility, implementing newer technologies that will assure greater efficiency and output.
The construction timeline is structured carefully to ensure thorough preparation. Kazar plans to complete the feasibility studies and financial arrangements by late 2025. Once these preliminary steps are completed, on-site construction is scheduled to begin early in 2026. The station is expected to play a pivotal role in Egypt’s long-term renewable energy strategy, contributing to its goals of increasing clean energy production and meeting growing electricity demands.
Beyond its technical and economic relevance, the hybrid plant represents what importance international collaboration plays for taking renewable energy to further distances. In fact, aside from making relations stronger and better between the UAE and Egypt, this collaboration would in some way serve as the standard by which any sort of cross-border engagement becomes important for sustainable development; Egypt shows that by combating environmental issues while advancing development economically.
The replacement of the Zafarana Wind Farm with the new hybrid station also gives an indication of the dynamic evolution of renewable energy in the region. The integration of solar and wind technologies maximizes resource utilization, providing a steady and reliable supply of energy. The hybrid model also helps to counter the intermittency challenges usually associated with renewable energy sources, making it a practical and efficient solution for large-scale energy needs.
This trend is actually a reflection of the greater emphasis globally toward cleaner forms of energy. With these concerns in climate change and energy security in most nations worldwide, innovations such as the hybrid plant by Kazar serve as examples and proof of future readiness for these nations. For Egypt, the move is actually proof of growing leadership and setting up the nation for hub positions regarding sustainable investments and technological progress.