Egypt’s KarmSolar Raises $3m Debt Funding To Develop Farafra Solar Grid.
KarmSolar, an Egypt-based solar power developer and electricity distributor has secured EGP83 million (US$3 million) in debt funding to support the further development and rollout of Farafra Solar Grid, the company’s second micro-grid-solution, covering 100 per cent of clients’ load.
KarmSolar targets to be the driving force behind the growth of the private solar energy market in Egypt through the introduction of innovative and combined solutions across the industrial, agricultural, commercial, and tourism sectors.
Targeting to becoming fully operational by the third quarter of 2023, Farafra Solar Grid is a first-of-its-kind microgrid solution that employs solar PV panels, battery storage system, and diesel generators in a centralized setup operate under a usufruct agreement, then distributes the generated electricity to the different off-takers.
The first phase of the Farafra Solar Grid will consist of a 3.4 MWp solar PV station, 3.7 MVA diesel generators, and a 4 MWh/1MW solar battery storage system, established under KarmSolar’s SPV; Mars for Selling and Distributing Electricity. The project will allow for around 60 per cent solar penetration with the aim of reaching 100% in three years’ time, thereby counterbalancing a total of around 5,200 tons of CO2 emissions per year.
The solar grid project has received EGP83 million (US$3 million) in debt financing from HSBC for phase one, with the support of Ezdaher Financial Consultancy.
“The kickoff of the Farafra Solar Grid enables us to achieve our vision of extending affordable, reliable solar energy to relatively obscure parts of the country. It is very refreshing to see institutions like HSBC willing to focus their efforts and trust towards investing in nonconventional projects like the Farafra Solar Grid,” said KarmSolar’s co-founder and CEO Ahmed Zahran.
“HSBC is committed to supporting and financing the transition to secure a net zero future by helping our clients access sustainable and innovative finance solutions across all business sectors so they can make the investments needed to achieve their net zero goals,” said Yasmin Farid, head of small and medium enterprises and business banking at HSBC Bank Egypt.