Kenya’s Jumbo Steel Mills has inked a deal with German solar financier and operator Ecoligo to deliver 4000 kWp for its main plant in Kilifi County to cut energy costs.
Ecoligo has published a notice of its intention to apply for an electric power generation licence this month to the Energy and Petroleum Regulatory Authority (EPRA). It intends to deploy the solar photovoltaic power in full to Jumbo.
Ecoligo will finance and operate the solar plant for eight years on a lease-to-own basis before transferring ownership to Jumbo. The solar firm says it takes three to nine months to build and operate a solar power plant for clients.
The solar system will provide a portion of the required energy to the energy-intensive steel plant during the day. Additional demand will be drawn from the electricity grid. Ecoligo says it delivers up to 55% energy savings to clients.
Jumbo launched operations in Kenya in 2018 and has a capacity of producing 130,000 tons of steel annually. The firm also converts waste metal scrap into reusable construction materials like Reinforcement steel bars. According to its website, it employs 250 people.
The solar power is expected to reduce the firm’s dependence on costly and unreliable electricity from the national grid. Electricity costs from utility Kenya Power have jumped in recent years, straining company bottom lines.