El Gouna advances sustainable tourism with Solarize-2 power plant
El Gouna Red Sea, the flagship year-round destination developed by Orascom Development Egypt, which has officially announced the opening of its latest green infrastructure project, Solarize-2.
The global hospitality sector is undergoing a profound transformation, with green energy integration moving from a niche consideration to a core operational strategy.
In Egypt, the push for sustainable tourism and urban development is taking significant strides forward. Leading this shift along the coast is El Gouna Red Sea, the flagship year-round destination developed by Orascom Development Egypt, which has officially announced the opening of its latest green infrastructure project, Solarize-2.
This new solar power facility marks a pivotal milestone in the resort town’s long-term sustainability journey, cementing its position as a pioneer in eco-friendly coastal development. By investing heavily in renewable energy, the destination is not only reducing its carbon footprint but also setting a formidable benchmark for the broader regional tourism industry.
Scaling renewable capacity: The Solarize Projects
At the heart of El Gouna’s green transition is a phased approach to solar energy expansion. The newly commissioned Solarize-2 facility represents a substantial upgrade to the town’s local energy grid. Developed in strategic partnership with SolarizEgypt, this facility adds significant capacity to the existing infrastructure.
Key project details and figures include:
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An impressive 8.6 megawatts (MW) of new solar capacity added through the Solarize-2 facility.
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A foundational 7.2 MW of capacity already established by the initial Solarize-1 project.
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A cumulative installed solar capacity of 15.8 MW now powering the integrated resort town.
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A strategic target for El Gouna to source more than 15 per cent of its total local energy requirements from renewable sources throughout 2026.
These capacity increases are essential for a rapidly expanding destination. As El Gouna continues to attract more residents and tourists, its overall electricity demands will inevitably grow. Consequently, the town has already outlined plans for additional solar installations in the future, ensuring that the share of renewable energy scales harmoniously with the town's physical expansion.
Strategic partnerships and private investment
The transition to renewable energy relies heavily on robust collaboration between developers, energy specialists, and equity investors. The delivery of Solarize-2 is a testament to this collaborative model. Ayman Waheed, CEO of SolarizEgypt, noted that the successful operation of the second solar plant reflects the strength of the companies' long-standing partnership and demonstrates the potential to scale privately financed renewable-energy infrastructure.
Furthermore, Energya Industries played a critical role as a major equity investor and owner in the Solarize-2 asset. Representatives from Elsewedy added that Energya Industries aims to expand its presence across the energy value chain while investing in technologies and infrastructure for Egypt and the region. This private-sector involvement is crucial for delivering the large-scale capital required to transition entire resort towns away from fossil fuels.
Financing the sustainability journey
Behind the physical solar panels and operational milestones lies a sophisticated green financing strategy. Funding such ambitious infrastructure requires significant capital backing, and Orascom Development Egypt has actively sought out sustainable finance mechanisms to support its long-term vision.
Recently, this long-term investment strategy has included a $155 million sustainability-linked loan from the International Finance Corporation (IFC). This substantial financial package incorporates stringent environmental and resource-efficiency targets, ensuring that the developer remains accountable to its ecological commitments. By aligning its financial obligations with its sustainability goals, the organisation is ensuring that environmental stewardship is embedded at the highest corporate level.
Setting a regional benchmark for green tourism
The broader implications of the Solarize-2 launch extend beyond the borders of El Gouna. As the global climate crisis intensifies, holidaymakers and property investors are increasingly prioritising destinations that demonstrate a genuine commitment to the environment. The Red Sea region, renowned for its fragile marine ecosystems, requires particularly sensitive development strategies.
By generating 15.8 MW of clean energy locally, El Gouna is actively reducing its reliance on traditional power grids and minimising greenhouse gas emissions. This proactive approach to eco-tourism proves that luxury travel and environmental responsibility can coexist. As the resort town continues to pioneer solar integration, it offers a replicable blueprint for other coastal developments. Ultimately, the successful commissioning of Solarize-2 serves as a powerful reminder that the future of travel and urban living must be fundamentally green.