KarmSolar, an Egypt-based solar power developer and electricity distributor, has secured $3 million in debt funding led by HSBC, to promote the further development and rollout of Farafra Solar Grid, the startup's second micro-grid-solution to cater for 100 percent of its clients’ load.
The startup is one of the leading private companies in the solar energy market in Egypt and with this funding, KarmSolar aims to spearhead the growth of the solar energy market in the North African country. To do this, KarmSolar is set to roll out an innovative and integrated solution (Farfra Solar Grid) - across the industrial, agricultural, commercial, and tourism sectors
Farafra Solar Grid will officially be launched in Q3 of 2023 and is a first-of-its-kind microgrid solution that utilises solar PV panels, battery storage system, and diesel generators in a centralized setup, operating under a usufruct agreement, then distributing the generated electricity to the different off takers.
According to the startup, phase one 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 aiming to reach 100% in three years’ time, thereby offsetting a total of around 5,200 tons of CO2 emissions per year.
The solar grid project has received EGP83 million (US$3 million) 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 inaccessible 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.