Under the agreement, the two companies will look into developing up to 500MW of wind power in the Gulf of El Zayt region on the Red Sea coast.
The MoU allows the consortium to carry out feasibility studies and prepare a firm proposal, Elsewedy said.
The project is set to be developed in two phases of around 250MW each, with commissioning starting in 2020. The project will be realised on a build, own and operate (BOO) basis.
In 2014, the government awarded Elsewedy six projects totalling 600MW, also on a BOO basis, following a competitive tender.
The offer has now been withdrawn, however, since Elsewedy did not "fulfill its obligations", according to the New and Renewable Energy Association (NREA). The capacity will now be retendered.