Lekela is to supply electricity to the Egyptian Electricity Transmission Company from its 250MW Ras Ghareb wind farm in the Gulf of Suez in Egypt.
The project will be constructed on a turnkey EPC basis, with an announcement on the contractor to be made at a later date, Lekela said.
Financial close is expected this year, and the project is expected to come online in 2021.
The $325m facility will produce more than 1000 gigawatt-hours a year of electricity and increase Egypt’s wind energy capacity by 14% once operational.
It will join Lekela’s other projects in South Africa, Senegal and Ghana that form its current 1.3GW portfolio.
Lekela chief executive Chris Antonopoulos said: “Egypt has a target of achieving 20% renewable power in its overall energy mix by 2022.
“Today’s agreement is a major milestone for delivering a 250MW wind farm to help achieve that goal.
“We would like to thank the Minister of Electricity and Renewable Energy, EETC, The Egyptian Electricity Holding Company, Egypt’s New and Renewable Energy Authority, the Minister of Investment and all those people, both in Egypt and beyond the country, who have helped us get to this point.
“Across Africa we are starting to see the positive impact renewable energy can have on communities and on enterprise.
“Egypt is a key part of our strategy to develop 1300MW of clean energy across Africa which will drive economic and social prosperity for its communities.”
Lekela general manager Egypt Faisal Eissa said: “We are excited to progress this project with the signing of the PPA.
“Egypt has favourable conditions to produce renewable energy and it is great to see that the government has ambitions to bring more clean energy onto the grid.
“Further, we look forward to working with the local community to develop a Community Investment Plan that will leave an impact that lasts even longer than the wind farm itself.”