KarmSolar, a leading solar energy company and multi-utility enterprise in Egypt, has secured EGP47 million (US$2.39m) in funding for the first financed solar Power Purchase Agreement (PPA) battery storage system in Egypt.
The funding was from Qatar National Bank ALAHLI (QNB ALAHLI) with an advisory led by Ezdaher Financial Advisory, an Egypt-based debt advisory firm.
This is part of a Phase 2 extension of KarmSolar’s current solar microgrid system for the Cairo 3A chicken farm complex in Giza, Egypt’s Bahareya Oasis.
Phase 2 of the project includes the installation of a battery storage system supplied by worldwide solar technology firm Sungrow, as well as an extension of the capacity of the current solar station.
This renovation has greatly increased the percentage of energy consumption generated by solar, bringing the project’s PV share to 50%.
With industry standards hovering around 30%, this project is regarded as a cutting-edge renewable energy initiative and innovation.
“Egypt’s first financed solar battery PPA project is a monumental step for the renewable energy sector in the region, and we are delighted to partner with QNB ALAHLI on this project,” Ahmed Zahran, KarmSolar’s Co-Founder and CEO, said.
KarmSolar’s CFO, Nabil Kammoun added, “There is rising interest from established financial institutions to explore and support advanced solar technologies. This new milestone will boost the deployment of battery solutions in Egypt and across the region on a much larger scale.’’
KarmSolar is continuing its decarbonization efforts to provide Cairo 3A’s consumption with the greatest amount of renewable energy while also substituting a significant percentage of Cairo 3A’s demands with solar energy.
This is in line with the COP27’s pledge to slow down decarbonization and promote the use of renewable energy sources.
“By Egypt’s Vision 2030 sustainable development objectives, and in alignment with Central Bank of Egypt’s directions towards promoting Sustainable Finance, QNB ALAHLI is proud to be playing a leading role in backing the renewable energy sector by highly recognizing the role that independent solar developers can contribute in the market alongside mega-scale electricity production companies,” Mohamed Bedeir, QNBALHLI CEO commented.
Phase 1 of the project calls for the construction of an on-site off-grid solar station by KarmSolar and Cairo 3A in 2020.
The poultry farm will be powered by a hybrid microgrid of PV solar and diesel generators. 30% of Cairo 3A’s energy requirements are met by the original on-site solar PV plant, which uses renewable energy.
