HSBC Provides $3 Million To KarmSolar To Finance The Farafra Solar Grid Development

To finance the Farafra Solar Grid development, KarmSolar, an Egypt-based cleantech company, received $3 million in debt financing from HSBC.

According to the release, the Farafra Solar Grid covers 100% of clients’ loads and is KarmSolar’s second grid solution after Marsa Alam Solar Grid.

The project will provide solar penetration of 60%, and a three-year goal of reaching 100%. This will offset a total of approximately 5,200 tonnes of CO2 emissions each year.

Farafra Solar Grid, a microgrid solution, is expected to be fully operational in the third quarter of 2023. It utilizes solar PV, battery storage, and diesel generators. The centralised setup operates under a usufruct arrangement, then distributes the electricity to different off-takers.

Juhayna and Nawa For Agricultural Investment are the current Phases 1 client. There is plenty of room for expansion to other clients in this area.

KarmSolar was founded in 2011 by Ahmed Zahran, Yumna Madi, Xavier Auclair, and Randa Fahmy. It provides renewable energy to several sectors of Egypt as part its goal to expand the private clean energy market.