TechPression

Tag: karmsolar

  • Egypt’s KarmSolar secures $3m in debt funding

    Egypt’s KarmSolar secures $3m in debt funding

    Egypt-based solar power developer and electricity distributor, KarmSolar, has secured EGP83 million (approximately $3 million) in debt funding to support the further development and rollout of Farafra Solar Grid, the company’s second micro-grid-solution, which will cover one hundred percent of clients’ load. 

    KarmSolar’s overarching mission is to serve as a driving force behind the expansion of the private solar energy market in Egypt. To this end, the company plans to introduce novel and comprehensive solutions to the industrial, agricultural, commercial, and tourism markets.

    Read also: KarmSolar Launches a New Minority Stake Round

    What KarmSolar Aims For With This Development

    The Farafra Solar Grid is a first-of-its-kind microgrid solution that utilises solar PV panels, a battery storage system, and diesel generators in a centralised setup, operating under a usufruct agreement and then distributing the generated electricity to the various off-takers. Its goal is to become fully operational by the third quarter of 2023.

    In the first phase of the Farafra Solar Grid, KarmSolar’s SPV, Mars for Selling and Distributing Electricity, will create a solar photovoltaic (PV) station with a capacity of 3.4 megawatts peak (MWp), diesel generators with 3.7 MVA, and a solar battery storage system with a capacity of 4 MWh/1MW. 

    The project will make it possible to utilise solar energy to the extent of around 60%, with the goal of utilising it to the extent of 100% during the next three years. This will result in a reduction of approximately 5,200 tonnes of CO2 emissions annually.

    Through the assistance of Ezdaher Financial Consultancy, the solar grid project was able to secure debt financing from HSBC in the amount of EGP83 million, which is equivalent to $3 million USD.

    According to Ahmed Zahran, co-founder and CEO of KarmSolar, the launch of the Farafra Solar Grid paves the way for the management of KarmSolar to realise their objective of bringing reasonably priced and dependable solar energy to regions of the country that are somewhat difficult to access. 

    He also finds it quite pleasant to see organisations like HSBC willing to focus their efforts and trust towards investing in nonconventional projects like the Farafra Solar Grid.

    “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,” he said

    According to Yasmin Farid, head of small and medium enterprises and business banking at HSBC Bank Egypt, “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.”

    A Previous Fund KarmSolar Acquired

    KarmSolar is now in the process of securing this $3 million debt fund After successfully receiving $2 million in finance for electricity storage at the Cairo 3A poultry farm approximately two months ago. At the time of the previous find, there was already a solar photovoltaic plant in operation there by the corporation.

    A commercial bank called QNB Alahli, which is a subsidiary of Qatar National Bank, provided the funding for the project (QNB), the previous fund. This was a part of a transaction that the Egyptian company Ezdaher Financial Advisory advised on. 

    KarmSolar planned to use the funds from the loan to instal an electricity storage system as part of the second phase of a solar farm that the company is constructing as part of an effort to provide power to the Cairo 3A Poultry Farm, which is situated in the Bahareya oasis in the Giza governorate of Egypt.

    The farm will be powered by solar energy, and KarmSolar is committed to providing 100 MWp of that electricity. The firm has already erected a solar farm in the region, which is equipped with a storage system with a capacity of 1 MW/3.957 MWh. 

    KarmSolar is committed to supplying the citizens of Egypt with solar energy, and the funds enable them to attain their goals.

  • KarmSolar, an Egyptian clean technology startup, raises $2.4 million

    KarmSolar, an Egyptian clean technology startup, raises $2.4 million

    The Qatar National Bank ALAHLI (QNB ALAHLI) has donated $2.4 million to KarmSolar, an Egyptian company that develops clean energy technology.

    The money will be used to expand the company’s solar microgrid solution for the Cairo 3A chicken farm in Giza’s Bahareya Oasis.

    Both the capacity of the existing solar station and the addition of a battery storage system will be increased as part of Phase 2 of the project. The battery storage system will be supplied by Sungrow, a global manufacturer of solar technologies. This improvement has successfully boosted the amount of energy consumption generated from solar, which has resulted in the PV share of the project is increased to 50%. Averages in the sector tend to be around 30%, so this project is seen as an innovation and a cutting-edge example of how to build a renewable energy project.

    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,” said Ahmed Zahran, Co-Founder and CEO of KarmSolar. “We are delighted to partner with QNB ALAHLI on this project.” The Chief Financial Officer of KarmSolar, Nabil Kammoun, stated that there is an increasing desire from established financial institutions to investigate and promote new solar technology.

    Read also: KarmSolar Launches a New Minority Stake Round

    The new funding will improve battery solutions in Egypt

    This new milestone will improve the way battery solutions are used in Egypt and the rest of the region on a much larger scale.

    Karmsolar, which is based in Egypt has announced that it will be holding a new round of minority stake sales to boost its expansion plans.

    KarmSolar has met a significant portion of Cairo 3A’s energy requirements with solar power. It is continuing its decarbonization efforts to meet Cairo 3A’s consumption requirements with the most technically feasible renewable energy. This is in line with the pledge that was made at COP27 to lessen the reliance on decarbonization and enhance the use of renewable energy.

    In his comment, Mohamed Bedeir, the Chief Executive Officer of QNBALHLI, said, “In line with Egypt’s Vision 2030 sustainable development goals and in line with the Central Bank of Egypt’s directions towards promoting sustainable finance, QNB ALAHLI is proud to play a leading role in supporting the renewable energy sector by highly recognizing the role that independent solar developers can play in the market alongside mega-scale solar developers.”

    Karmsolar is committed to ensuring finances for new projects in Egypt and Africa

    Saad Khaled, a representative from Ezdaher, was quoted as saying, “It has been our extreme pleasure to be mandated by KarmSolar as their financial advisor in raising the required debt funding for this landmark project.” This successful transaction shows how committed we are to supporting sustainable funding through new ways of financing projects in Egypt and Africa that are good for the environment.

    In the first phase of the project, known as Phase 1, KarmSolar entered into a power purchase agreement (PPA) with Cairo 3A in 2020 to establish an on-site off-grid solar station that would supply the poultry farm with electricity through the use of a hybrid microgrid consisting of PV solar panels and diesel generators. Thanks to the first on-site solar PV plant, 30% of Cairo 3A’s total energy needs are met by renewable energy.

    Rwanda’s InfraCo and Equatorial will invest $1.7 million in solar mini-grids

    About Karmsolar

    KarmSolar was established in 2011 in a cafe in Zamalek by Ahmed Zahran, Randa Fahmy, Yumna Madi, and Xavier Auclair with the goal of empowering Egyptian companies and communities with sustainable energy. The founders of the company were on a spiritual retreat in the Karm Eco-lodge in the St. Catherine’s area of Sinai when they came up with the name KarmSolar.

  • KarmSolar Launches a New Minority Stake Round

    KarmSolar Launches a New Minority Stake Round

    Egypt’s largest private power utility and solar energy provider, KarmSolar, has raised a new round of funding to help with its plans to grow in the country and the region.
    KarmSolar wants to lead the growth of the private solar energy market in Egypt by offering cutting-edge, integrated solutions for the industrial, agricultural, commercial, and tourism sectors.

    Synergy Consulting, the US-based company, will act as the sell-side advisor for the new investment round. The money will be used to support existing power generation and distribution businesses as well as new ones, such as KarmWater, which provides solar water desalination solutions, and KarmCharge, an electric mobility business.

    Through the minority stake sale, we are seeking a new partner to join KarmSolar’s current shareholders and its strategic shareholder, EDF Renouvelables, in supporting the next stage of our journey. “These are exciting times for the future of smart, connected utility platforms, and we plan to be at the forefront of this paradigm shift in our region,” said Ahmed Zahran, CEO and co-founder of KarmSolar.

    How Did KarmSolar Become So Big In The Egyptian Energy Market?

    One would think that a nation like Egypt would be ideal for solar energy given its population of over 90 million, ideal position, geography, and climate.
    Although the country’s average annual solar radiation is between 2,000 and 3,200 kWh per square meter, solar energy is more of a myth than a reality in warm, sunny Egypt, which is on the edge of the African Sahara and nevertheless imports enough gas to power electricity-generating facilities everywhere.

    Read: More African Countries To Enjoy Solar-Powered Internet From Tizeti

    Things are starting to alter. In 2020, the Egyptian Ministry of Electricity and Energy hoped to meet 20% of the country’s demand for electricity using renewable sources. However, most comparable projects concentrated on wind energy as a power source rather than solar energy.

    Egypt now only has one solar energy project, a 20 megawatt component of a 140 megawatt solar thermal and combined cycle power plant.

    The only developer for a true solar project is KarmSolar, an Egyptian solar technology company focusing on environmentally friendly, economically viable, and sustainable energy solutions. KarmSolar is currently running its station off phase 1 of the Egyptian government’s Feed In Tariff (FiT) program. It is a 2.2 MW station in Hurghada, a tourist destination on the Red Sea, in Sahl Hashish.

    KarmSolar was founded in 2011, one of the most troubled years in recent Egyptian history. Since then, it has become a leader in off-grid solar energy integration and the only supplier and developer of high-capacity solar pumping stations, especially for the agricultural industry.

    After five years, KarmSolar (Arabic for “fruit-bearing vine”) has grown into new uses, including a patented technological innovation that enables the use of solar energy to pump water to farmlands at a quarter of the cost of currently utilized electricity-powered pumps.
    KarmSolar’s chief executive officer and co-founder, Ahmed Zahran, claims: “While KarmSolar counts as the sole provider of solar energy in Egypt, we hate that status. We see the future of this, and we want more people in on it.”

     

    Solartaxi launches an electric car ride-hailing app in Ghana.

    Because of their unique “Maximum Power Point Tracking” algorithm, the company can cut the costs of designing, making, and building solar pumping drives by a lot.
    Head of research and development for the business and additional co-founder, Randa Fahmy, states, “The end product was much costlier because we used to have the software and hardware components both imported; we now manufacture some of the components locally, which creates an easier entry point for clients.”
    She also says, “Today, it’s easier for large organizations, SMEs, and even individual farmers to use solar water pumping solutions in a poor country where agriculture is the main source of income.”
    Another company under the same name is KarmBuild, which focuses on designing and building buildings that are good for the environment and use energy efficiently.
    Zahran says, “We started KarmBuild to make it the only company in the area to use solar energy technology in building design. We do this by using a wide range of materials that are good for the environment and by teaching architects how to build solar-powered buildings that are good for the environment.”

    Zahran is hopeful about using the startup to create more off-grid environments, such as in agricultural or tourism-related communities, even though this may sound appealing in a region where “eco-friendly” doesn’t typically spring to mind in crowded, semi-industrial, business-oriented cities like Cairo. But when it comes to living off the grid, he has no illusions about places like Cairo or Alexandria.

    “(These cities are) too crowded, too dependent on gas-powered electricity and too anti-change for anyone to try.” He goes on to say that his company’s work has cut about 22 tons of carbon dioxide in a country still debating how important it is to protect natural resources and reduce carbon emissions.

    EFG-Hermes leasing has established a strategic relationship that effectively offers lease finance solutions for solar energy projects in Egypt, notably in smaller industrial and tourist areas, as KarmSolar and its subsidies seek to educate large sectors on moving off-grid.
    Zahran says, “We have significantly lowered the cost, whether in going off-grid or building renewable energy-based projects. Whatever is done, solar energy is relatively expensive and at least much more expensive than government-subsidized gas-enabled power. The only solution was to get a major corporation like EFG-Hermes to go in and finance projects.”

    He adds, “The barriers to renewable energy need to be broken, and solar energy must become accessible in a country that is, environmentally speaking, ideal for anything solar.”
    With the startup’s belief in pushing solar-powered batteries that offer a 100% total payback on investment in less than 4 years, the goal is to have impoverished individual farmers and small workshops working on solar energy.