The joint business was created in 2021 to develop a portfolio of cost-efficient, renewable energy solutions for commercial and industrial customers in Africa.
Under a long-term agreement, Lumika will set up its first solar park in the North African country with a capacity of up to 50 MW to supply clean energy to Lafarge’s Ain Soukhna cement plant in the Suez governorate.
With the offtake deal, the cement maker aims to boost the share of clean power to 50% of the electricity used during the day at the plant. The agreement will enter into force by the first quarter of 2024.
With about 2,000 employees, Lafarge Egypt’s factory in Ain Al-Sokhna has a capacity of 10.2 million tonnes per year and annual power consumption of about 750 GWh.
The deal reflects Egypt’s efforts to increase its green energy portfolio as the country is in the process of shifting to sustainable and renewable sources of energy.
The North African country intends to increase the supply of electricity generated from renewable sources to 20% by 2022 and 42% by 2035, with wind providing 14 percent, hydropower 2 percent, photovoltaic (PV) 22 percent, and concentrating solar power (CSP) 3 percent by 2035.
With the country’s abundant possession of land, sunny weather, and high wind speeds, renewable energy projects can be easily achieved.
As part of Egypt Vision 2030, to increase local content in all fields, the Ministry of Electricity and Renewable Energy (MOERE) has succeeded in reaching 30 percent local content for wind farms in 2018.