Engie targets speedy renewables growth in Mideast, North Africa
The 650 megawatt (MW) Red Sea Wind Energy project in Egypt project can power more than a million households annually, at a time when electricity shortages have forced the country to spend billions buying liquefied natural gas, turning it into a net gas importer for the first time last year.
"This renewable energy is cheaper than burning gas or other fossil energy, because the price is lower, so it clearly allows for burning less gas and for the country to either import less gas or export more," François Xavier Boul, Engie's managing director for the Middle East and Africa, told Reuters.
As permitting remains sluggish in Europe and U.S. offshore wind leases have been frozen under President Trump, Engie now hopes projects in the Middle East and North Africa can help it meet its 2030 target of reaching 95 GW of installed renewable capacity, up from around 51 GW today.
Boul said rising economic development, an expected increase in power consumption, administrative fast-tracking and short project lead times has led Engie to prioritize tenders to build in Egypt, Morocco, the United Arab Emirates and Saudi Arabia.
Red Sea Wind Energy is Engie's second wind project in Egypt, with a third site in development that will exceed 900 MW when built.
Last year Engie signed a preliminary deal with Morocco's phosphates and fertilizer giant OCP to explore renewable energy, ammonia and green hydrogen projects beginning in 2026.
Boul said in the short and medium-term, Engie's focus in the Middle East and North Africa region were on solar, wind, battery and hybrid projects.
Red Sea Wind Energy is owned by Engie (35%), Orascom Construction PLC (25%), Toyota Tsusho Corporation (20%) and Eurus Energy Holdings Corporation (20%). (Reporting by America Hernandez in Paris; editing by David Evans)
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