KarmSolar, Egypt’s Clean Energy Tech Startup, Receives $2.4M to Scale up its Operation
KarmSolar, Egyptian-based clean energy, and multi-utility tech startup has announced receiving $2.4 million in funding from Qatar National Bank ALAHLI (QNB ALAHLI) for the first financed solar Power Purchase Agreement (PPA) battery storage system in Egypt, with advisory led by Ezdaher Financial Advisory, an Egypt-based debt advisory firm.
The funding is part of KarmaSolar’s phase 2 expansion of its existing solar microgrid solution for the Cairo 3A poultry farm facility in Egypt’s Bahareya Oasis.
Phase 2 of the project includes the installation of a battery storage system supplied by global solar technology manufacturer, Sungrow, as well as an expansion of the capacity of the existing solar station. Additionally, this upgrade has significantly increased the percentage of energy consumption generated by solar, bringing the project’s PV share to 50%. Also, with industry averages hovering around 30%, this project is regarded as a cutting-edge renewable energy project and innovation.
In response to the investment, Ahmed Zahran, CEO of KarmSolar, which he co-founded in 2011 with Omar Hosny and Tamer Essawy, said, “Egypt’s first financed solar battery PPA project is a monumental step for the region’s renewable energy sector, and we are delighted to partner with QNB ALAHLI on this project.”
Nabil Kammoun, CFO at KarmSolar added, “Established financial institutions are increasingly interested in exploring and supporting advanced solar technologies.” This new milestone will undoubtedly accelerate the deployment of battery solutions in Egypt and throughout the region.”
KarmSolar has replaced a large portion of Cairo 3A’s energy needs with solar energy and is continuing its decarbonization efforts to supply Cairo 3A’s consumption with as much renewable energy as possible. This aligns with the COP27 commitment to reduce carbon emissions and increase reliance on renewable energy.
What KarmSolar ‘s investors are saying
“Following Egypt’s Vision 2030 sustainable development objectives, and in alignment with the 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, CEO of QNBALHLI said.
On the part of the advisory team, Saad Khaled, founder, and managing partner at Ezdaher said “It’s 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 adds to our persistent commitment to promoting sustainable funding with innovative financing structures for green projects across Egypt & Africa.”
In Phase 1,
Additionally, you will recall that KarmSolar signed a Power Purchase Agreement (PPA) with Cairo 3A in 2020 to establish an on-site off-grid solar station to supply electricity to the poultry farm via a hybrid microgrid of PV solar and diesel generators in phase 1 of the project. Also, the original on-site solar PV station uses renewable energy to meet 30% of Cairo 3A’s energy needs.