The Ministry of Electricity and Energy said on Sunday it has signed an agreement with an Italian company to produce electricity from wind farms with a 120 megawatt capacity.

The Italian company will establish a wind farm in the Suez Gulf area to feed factories and plants all over Egypt.

This agreement comes as part of encouraging the establishment of a competitive market for electricity, the ministry said in a statement.

The electricity sector facilitates establishing various kinds of power plants to private sector companies. The project is the first of its kind in Egypt.