El Nahda goes solar at Egypt cement plant with 30-year PPA
- Özcan Berk Atakan
- 4 minutes ago
- 2 min read
El Nahda Industries has taken a significant step toward industrial decarbonisation by signing a long-term solar power agreement for its cement plant in Egypt. The company will source clean electricity from a dedicated on-site solar photovoltaic (PV) facility under a 30-year Power Purchase Agreement (PPA), reinforcing the growing role of renewables in heavy industry across the MENA region.
The project involves the development of a 27-MW solar power plant that will supply electricity directly to El Nahda’s cement facility located in Egypt’s Qena Governorate. The solar plant will be developed, financed, owned, and operated by Cobalt, a subsidiary of IRSC for Renewable Energy Solutions, under a build-own-operate-maintain (BOOM) model.
Cement manufacturing is one of the most energy-intensive industrial processes, making electricity costs and supply reliability critical operational factors. By locking in a 30-year PPA, El Nahda secures long-term price visibility and reduces exposure to fossil-fuel price volatility, while ensuring a stable supply of clean power for its operations.
Beyond cost stability, the agreement supports El Nahda’s sustainability objectives by lowering its carbon footprint and aligning its production with international decarbonisation trends. This is increasingly important as carbon-intensive industries face tighter environmental regulations and market pressures, including mechanisms such as the EU’s Carbon Border Adjustment Mechanism (CBAM).
The project also reflects Egypt’s broader push to integrate renewable energy into industrial operations through private-sector-led initiatives. Corporate PPAs are emerging as a key tool to accelerate solar deployment without relying solely on government subsidies, particularly in sectors with large and predictable power demand.
El Nahda’s cement plant has been operational since 2012 and has an annual production capacity of approximately 1.5 million tonnes of cement. Supplying a portion of this energy demand with on-site solar power demonstrates how renewable solutions can be practically integrated into heavy industry while maintaining competitiveness.
This 30-year solar PPA highlights a growing trend across the region: renewables are no longer limited to utility-scale grid projects but are becoming a core component of industrial energy strategies. As more industrial players seek long-term cost control and emissions reduction, similar solar and hybrid PPA structures are expected to follow.
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