El Gouna City, a comprehensive residential development by Orascom Development Holding (ODH), has extended its collaboration with SolarizEgypt to enhance an existing solar photovoltaic (PV) power plant with a capacity of 7.2 megawatts (MW) in El Gouna City on the Red Sea coast.
In this renewed partnership, SolarizEgypt is set to invest 200 million Egyptian pounds ($6.5 million) to construct and manage the 7.2MW second phase, effectively doubling the total capacity to 14 MW. The first phase, with a capacity of 7.2MW and an investment of EGP 97 million from SolarizEgypt, started its operations in 2022, fulfilling almost 16% of El Gouna City’s energy needs.
The second phase is slated to begin operations in the fourth quarter of 2024, with the combined output of both phases anticipated to reach 32,000 MWh annually.
Mohamed Amer, CEO of El Gouna City, emphasized their commitment to conserving natural resources for future generations. Furthermore, El Gouna City aims to align with sustainability standards and minimize its environmental impact by implementing enhanced environmental sustainability practices in the Red Sea Governorate.
Yassin Abdel Ghaffar, Founder & Managing Director of SolarizEgypt, highlighted that this solar power plant stands as the largest joint venture between two private sector entities in Egypt. He sees the project as a groundbreaking step towards leveraging green energy sources, illustrating a practical example of private sector investment in alternative energy.
Under the terms of the agreement, El Gouna City offers the land, and SolarizEgypt invests, builds, and manages the solar power plant. El Gouna City, in turn, purchases the generated electricity under a corporate Power Purchase Agreement (PPA), with the PPA for Phase 1 spanning 25 years.
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