KarmSolar to Invest $110 Million in New Solar Projects as Egypt Accelerates Clean-Energy Transition

Egypt’s renewable-energy landscape is set for a significant boost as KarmSolar announced an investment plan of $110 million over the next three years to expand its solar infrastructure across key regions, while also launching its first international project in Cyprus.

The company, led by CEO Ahmed Zahran, is advancing three major domestic projects alongside its new overseas venture, reflecting its strategy to build integrated solar generation and distribution networks supporting Egypt’s wider energy-transition goals.

Key Projects Underway in Egypt

KarmSolar’s largest planned development is a 100 MW solar plant under Egypt’s newly introduced Private-to-Private (P2P) electricity framework. Developed by its special purpose vehicle, Neptune, the project will supply industrial consumers in the New Valley Governorate via the national grid. Zahran said the initiative marks a “milestone in electricity market liberalisation” and strengthens long-term energy security.

The company is also expanding the Farafra Solar Grid, increasing contracted capacity from 3.2 MVA to 8.37 MVA and raising the share of solar-plus-storage utilisation from 30% to 60%. Serving 64,000 acres of agricultural land, the Farafra network is moving toward full solar dependency to cut emissions and lower operating costs for agribusinesses.

In Marsa Alam, KarmSolar is scaling its private-licensed hybrid solar grid—currently powering nine resorts—through a 10 MW system that replaces diesel generators and reduces energy costs by up to 60%. Subsidiary KarmWater has launched the region’s first solar-powered desalination facility, supplying 300 m³ per day and meeting resort water needs at lower cost.

“These projects show that we are not only producing solar electricity, but also building entire distribution networks that enhance sustainability and efficiency,” Zahran said.

Targeting High-Growth Sectors

Zahran said KarmSolar focuses on regions with strong economic activity but persistent energy challenges, supplying solar-based solutions to agriculture, tourism, and, increasingly, industrial clients through the P2P scheme. He noted that the company’s plans align with Egypt’s national push for renewable integration and green hydrogen development.

The CEO added that KarmSolar relies on commercially viable financing models rather than environmental labels, though tools such as green bonds and a potential IPO remain under evaluation.

Expansion Beyond Egypt

The company’s first international project is underway in Cyprus, chosen for its manageable market size, supportive regulatory environment, and proximity to Egypt. KarmCyprus CEO Yiannis Karis said the company partnered with local EPC and maintenance firms to ensure compliance with Cypriot standards.

The project secured €5 million in financing from Eurobank, alongside €2 million from Karm and €8 million from Egyptian and international investors.

Karis described Cyprus as a “gateway for future opportunities” in southern Europe, the Eastern Mediterranean, and the wider region.

Regional Growth Ambitions

Zahran said the company aims to evolve into a regional renewable-energy utility integrating generation, distribution, storage, and electric mobility. “The lessons we learn in Egypt and Cyprus will guide our expansion into new markets across Europe and Africa,” he said.

With major grids operational in Farafra, Marsa Alam, and the New Valley, and with new funding allocated for large-scale expansion, KarmSolar is positioning itself as one of the key solar developers shaping the future of energy in Egypt and the Eastern Mediterranean.