July 2 (Bloomberg) -- ElSewedy Electric Co., Egypt’s biggest publicly traded seller of cables, won an auction to build and operate six wind farms as the government turns to renewable energy to cope with a power shortage.
ElSewedy will own the six 100-megawatts plants in the Al-Zayt Gulf on the Red Sea and will be able to sell the power to its customers, according to a statement to the Cairo stock exchange, making it the first private company to sell electricity independently from the government.
“The government will probably give them favorable conditions as the power shortage is becoming a chronic problem for it,” said Ghada Alaa, an analyst at Beltone Financial. “It is a win-win situation for the company and the government.”
ElSewedy is yet to negotiate land-use contracts with the government and won’t be obligated to invest a minimum amount or use certain technology, it said, without giving a cost or timeframe.
The company advanced 1.1 percent in Cairo trading.
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