Egypt’s clean-energy transition is gaining fresh momentum as KarmSolar expands its footprint in the national solar market through a series of new, large-scale projects. The company, led by CEO Ahmed Zahran, plans to invest $110m over the next three years to develop solar infrastructure across key regions, while simultaneously rolling out its first international project in Cyprus under the leadership of KarmCyprus CEO Yiannis Karis.
Expanding Solar Capacity across Egypt
Zahran highlights three flagship projects at the heart of KarmSolar’s investment plan.
The first is a 100 MW solar plant developed under Egypt’s new Private-to-Private (P2P) framework. As one of four companies selected to pilot the scheme, KarmSolar’s special purpose vehicle, Neptune, will supply electricity to industrial clients via the national grid in the New Valley Governorate. The initiative marks a milestone in Egypt’s electricity market liberalisation and a step toward long-term energy security.
The second project is the expansion of the Farafra Solar Grid, where contracted electricity supply capacity is rising from 3.2 MVA to 8.37 MVA. Solar utilisation—with battery storage—will increase from 30% to 60%. Serving 64,000 acres of agricultural land, the Farafra grid aims for 100% solar dependency to cut emissions, reduce operating costs, and provide reliable power to agribusinesses.
The third initiative involves advancing the Marsa Alam Solar Grid, the region’s first private-licensed grid. The 10 MW hybrid system, connecting nine resorts, replaces diesel generators with solar power—cutting energy costs by up to 60% and eliminating millions of dollars in grid-connection expenses. KarmWater has also launched Marsa Alam’s first solar-powered desalination plant, producing 300 m³/day and meeting all resort water needs at 25% lower cost.
“These projects demonstrate our integrated approach: we’re not just producing solar electricity, but building complete distribution networks that ensure long-term sustainability and efficiency,” Zahran says.
Targeting High-Potential Regions
KarmSolar focuses on regions with strong economic activity but structural energy challenges.
“We are industry-agnostic,” Zahran notes. “Today, we lead solar adoption in agriculture and tourism, and with the P2P framework, we are moving into the industrial sector. Our mission is to bring reliable, affordable, and sustainable energy to sectors where it can have the greatest impact.”
He emphasises that KarmSolar’s strategy aligns closely with Egypt’s national energy goals. With the government accelerating renewable integration and promoting green hydrogen, Zahran sees expanded opportunities for private investment supported by recent regulatory reforms.
On financing, he stresses that KarmSolar employs commercially driven models rather than relying on environmental labels. “Renewables are now mainstream. If a project makes economic sense, we pursue it. Green-finance labels are secondary; what matters is building financially viable, sustainable projects,” he says.
Interest-rate and currency fluctuations remain challenges—affecting imported components and financing costs—but Zahran says the company continues to explore tools such as green bonds, with a potential IPO under consideration to broaden its investor base.
Regional Expansion
For its first international venture, KarmSolar selected Cyprus for its proximity, manageable market size, and compatibility with the company’s technical expertise.
“We can transfer our know-how effectively and maintain close oversight,” Zahran explains. The island also provides access to EU markets and a supportive regulatory environment for renewable energy growth.
Yiannis Karis, CEO of KarmCyprus, underscores the importance of local partnerships. “We worked with Cypriot EPC and maintenance firms to meet local standards and optimise operations. Cooperation with regulatory and grid authorities was essential to secure permits and align with Cyprus’s energy-transition goals.”
The project secured €5m in financing from Eurobank, alongside €2m from Karm and €8m from Egyptian and international investors—a blended model that supports both high-quality asset development and flexible capital for expansion.
Cyprus as a Launchpad
Karis sees Cyprus as both a strategic destination and a gateway for wider Mediterranean and European expansion. “Cyprus bridges our North African expertise with the EU energy landscape. It serves as a test case for cross-border integration and a platform for future projects in southern Europe, the Levant, and neighbouring islands,” he says.
He adds that investor confidence in the project demonstrates the strength of KarmSolar’s model. “Being a non-EU developer has not been a barrier. Investors look for bankability, execution, and track record—all areas where Karm delivers.”
Zahran notes that the company’s long-term vision is to build a regional renewable-energy utility that integrates generation, distribution, storage, and electric mobility. “The lessons we learn in Egypt and Cyprus will guide our expansion into other high-potential markets in Europe and Africa.”
Looking Ahead
With $110m allocated for Egyptian projects, operational grids in Farafra, Marsa Alam, and the New Valley, and a growing foothold in Europe through KarmCyprus, KarmSolar is positioning itself as a leading regional solar player. Blending technological innovation, integrated energy networks, and disciplined financing, the company aims to reshape energy access and drive sustainable growth across Egypt, the Eastern Mediterranean, and beyond.
