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ACWA Power, Oman Investment Authority Study Possibility of Wind Power Plant Project in Egypt

Signing the memorandum of understanding between the Oman Investment Authority and the Saudi ACWA Power company to study the possibility of investment in the Suez wind power plant project (Oman News Agency)
Signing the memorandum of understanding between the Oman Investment Authority and the Saudi ACWA Power company to study the possibility of investment in the Suez wind power plant project (Oman News Agency)
    Sharm el-Sheikh - Lamia Nabil
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ACWA Power, Oman Investment Authority Study Possibility of Wind Power Plant Project in Egypt

Signing the memorandum of understanding between the Oman Investment Authority and the Saudi ACWA Power company to study the possibility of investment in the Suez wind power plant project (Oman News Agency)
Signing the memorandum of understanding between the Oman Investment Authority and the Saudi ACWA Power company to study the possibility of investment in the Suez wind power plant project (Oman News Agency)

Saudi Arabia and Oman signed on Tuesday a memorandum of understanding to study the possibility of investing up to 10 percent in the development, construction, and operation of the 1.1 GW Suez wind power plant project, which is valued at $1.5 billion.

Oman News Agency reported that Oman Investment Authority (OIA) signed an MoU with Saudi Arabia's Acwa Power to study the possibility of investing up to 10 percent in the Suez wind power plant project in Egypt.

The signing of the memorandum of understanding was attended by Prince Abdulaziz bin Salman, Saudi Minister of Energy, and Engineer Salem Al Aufi, Omani Minister of Energy and Minerals.

ACWA Power Company signed a memorandum of understanding with the Egyptian New and Renewable Energy Authority and the Egyptian Electricity Transmission Company on Nov. 1 to build the 10 gigawatts (GW) wind energy project.

The MoU was signed on the sidelines of the 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27) in Sharm El-Sheikh, Egypt.

The deal focuses on cooperation in the fields of oil, gas, electricity, and renewables. It will also facilitate cooperation on carbon capture, reused, and storage.

The MoU also includes cooperation on hydrogen as well as enhancing digital transformation in the energy field.

“We signed the MOU as it is in line with the Sultanate’s efforts to enhance joint investments with our brothers in the Kingdom of Saudi Arabia and the Arab Republic of Egypt in renewable energy projects, particularly wind power” stated Mulham Basheer Al Jarf, Acting Deputy President for Investment at OIA.

“Oman has a net zero emissions goals by 2050, and to this end, the country is developing an ambitious plan for energy transformation and decarbonization, which includes the implementation of major projects in the field of hydrogen and renewable energy,” he added.

“Suez Wind Energy was already a remarkable project because of its ambition and scale,” said ACWA Power Chairman Mohammad Abunayyan.

“The signing of this key MOU demonstrates the confidence of the investor community in ACWA Power’s expertise and capability to deliver giga-scale projects, as we continue to build upon our renewables portfolio in Egypt,” he added.

The Suez Wind Farm project, which is expected to start operations in 2026, is located close to Ras Ghareb City in the Gulf of Suez region near Jabal Al Zait in Egypt.

Power will be generated using turbines of up to 220 meters in addition to several latest advanced technologies.

The plant is expected to operate at the highest level of efficiency and will generate enough power for approximately one million residential units and reduce about 2.4 million tonnes of carbon emissions annually.

It should be noted that OIA, represented by its subsidiary OQ Group, signed a joint development agreement for the Oman Hydrogen Project with Saudi Company ACWA Power last May to establish an ammonia production plant using green hydrogen and renewable energy sources in Oman.

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Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
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Bank of England Cuts Main Interest Rate by a Quarter-point to 4.75%

Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS
Bank of England Deputy Governor for Monetary Policy Clare Lombardelli, Bank of England Governor Andrew Bailey, The Bank of England's Head of Media and Stakeholder Engagement Katie Martin and Deputy Governor, Markets and Banking, Dave Ramsden hold the central bank's Monetary Policy Report press conference at the Bank of England, in London, on November 7, 2024. HENRY NICHOLLS/Pool via REUTERS

The Bank of England cut its main interest rate by a quarter of a percentage point on Thursday after inflation across the UK fell below its target rate of 2%.
The bank said its rate-setting panel lowered the benchmark rate to 4.75% — its second cut in three months — though its governor Andrew Bailey cautioned that interest rates would not be falling too fast over coming months.
“We need to make sure inflation stays close to target, so we can’t cut interest rates too quickly or by too much,” he said. “But if the economy evolves as we expect it’s likely that interest rates will continue to fall gradually from here.”
In the year to September, UK inflation stood at 1.7%, its lowest level since April 2021 and below the central bank’s target rate of 2%, The Associated Press reported.
Central banks worldwide dramatically increased borrowing costs from near zero during the coronavirus pandemic when prices started to shoot up, first as a result of supply chain issues built up and then because of Russia’s full-scale invasion of Ukraine which pushed up energy costs.
As inflation rates have recently fallen from multi-decade highs, the central banks have started cutting interest rates.
Economists have warned that worries about the future path of prices following last week's tax-raising budget from the new Labour government and the economic impact of US President-elect Donald Trump may limit the number of cuts next year.
The decision comes a week after Treasury chief Rachel Reeves announced around 70 billion pounds ($90 billion) of extra spending, funded through increased business taxes and borrowing. Economists think that the splurge, coupled with the prospect of businesses cushioning the tax hikes by raising prices, could lead to higher inflation next year.
The rate decision also comes a day after Trump was declared the winner of the US presidential election. He has indicated that he will cut taxes and introduce tariffs on certain imported goods when he returns to the White House in January. Both policies have the potential to be inflationary both in the US and globally, thereby prompting Bank of England policymakers to keep interest rates higher than initially planned.