Saudi Energy Transition News: Egypt-Saudi Wind Alliance Delivers $3.8B in Investment and 1.1 GW Capacity
In a landmark move accelerating regional clean energy goals, Saudi Arabia and Egypt have signed a $2.3 billion wind energy agreement, solidifying their long-term cooperation on sustainable electricity. Under the 20-year BOT deal, Egypt will purchase wind-generated electricity from ACWA Power—at an ultra-competitive rate of 2.4 US cents per kilowatt-hour. The generating station will be located south of Hurghada, along Egypt’s Red Sea coast, with ACWA Power assuming full funding and operational responsibility.
This agreement aligns with Egypt’s national strategy to expand renewable energy capacity and enhances Saudi Arabia’s profile as a leader in international clean power partnerships. It also complements a January 2025 win by ACWA Power and Hassan Allam Utilities, who jointly secured a wind project in the Gulf of Suez and Jabal El-Zeit. The initiative, with 1.1 GW output capacity, involves an additional $1.5 billion in investment, bringing the combined commitment to wind energy infrastructure to $3.8 billion.
These initiatives underscore the Kingdom’s dual role—as financier and clean energy exporter—while opening the door for BOT-based models across the region’s emerging energy markets.
July 2025: Taqatech Accelerator Targets 60 Startups to Fuel Energy Innovation and Efficiency
Shifting focus to domestic innovation, another notable update in Saudi Energy transition news is the launch of a high-impact accelerator—Taqatech—by the Saudi Ministry of Energy, in partnership with “The Garage.” This forward-looking program is designed to support 60 energy-related startups over three years, focusing on energy efficiency, operational cost reduction, and technological localization.
Each of the three startup cohorts (20 startups per year) will progress through a structured roadmap that includes exploration and selection, acceleration, pilot deployment, and investment rounds. Each phase is scheduled to last between six and twelve months, providing startups with mentorship, investor connections, and technical support to translate their innovations into market-ready solutions.
The accelerator is also a tool for job creation and emissions reduction. Participating startups are expected to contribute directly to Saudi Arabia’s clean energy transition while tapping into one of the most resource-rich ecosystems in the MENA region.
Local Technology Development Anchors Saudi Energy Transition Agenda
Saudi Arabia’s energy transition isn’t just about generating cleaner power—it’s also about developing homegrown technologies that reduce dependence on imported solutions. The Taqatech program places strong emphasis on localizing energy technologies, especially in clean production, storage, and smart grid management.
With backing from industry leaders, academic institutions, and public agencies, startups can access a dynamic testing ground for scalable energy innovations. This reinforces the Kingdom’s long-term sustainability goals and accelerates its Vision 2030 economic diversification efforts.
The Garage: 28,000m² Hub Paves Way for Energy Startups and Collaboration
At the center of this transformation is The Garage, a repurposed 28,000-square-meter facility in Riyadh built to host up to 300 startups. It offers 24 meeting rooms, dedicated workshop zones, and event capacity for 1,000 attendees, making it one of the largest incubator spaces in the region.
By centralizing support services, business infrastructure, and community programming, The Garage has become the Kingdom’s key venue for energy entrepreneurship. It forms a physical anchor to Saudi Arabia’s innovation-first strategy—bridging startups, investors, and policymakers under one roof.
Also Read: Saudi Energy Transition: Resilience in a $5.9T Global Shift
