Egyptian IPP seeks capital infusion for solar and water build-up

Written by
30 Aug 2022
Egyptian IPP seeks capital infusion for solar and water build-up

KarmSolar launches new round of capital fundraising seeking minority partner to expand business in distributed solar power and water provision, seeks to 'disrupt' utility sector in Egypt

KarmSolar, a leading independent power producer in the emerging private market for solar power in Egypt, has initiated a round of capital fundraising for its local and regional expansion plans.

The opening to new shareholders was announced by the company yesterday. The company will be advised by US-based Synergy Consulting in the investment round.

The capital injection will support KarmSolar’s existing power generation and distribution businesses, as well as direct capital into new business verticals like KarmWater, a solar water desalination solutions provider, and electric mobility venture KarmCharge.

The company said that its long-term strategy is to disrupt the existing utility business in Egypt by developing a vertically integrated multi-utility platform with a specialisation in solar power generation, as well as urban and regional power distribution.

“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,” said CEO and Co-founder of KarmSolar Ahmed Zahran.

“These are exciting times for the future of smart and connected utility platforms and we plan to be at the forefront of this paradigm shift in our region,” he said.

KarmSolar, founded in Egypt in 2011, has built a business offering solar-integrated energy, water, and mobility solutions. The company secures PPAs and solar distribution contracts with large commercial, agricultural and industrial clients.

It holds a portfolio of 42 MW of secured and financed generation assets, 30 MW of which are operational, according to its statement.

In 2015, KarmSolar became the first company in Egypt to receive an Independent Power Producer license from the Electric Utility and Consumer Protection Regulatory Agency (Egypt ERA), allowing it to sell electricity from a major off-grid solar station.

In 2019 EDF Renewables, the renewable energy subsidiary of EDF Group, took a strategic equity stake in KarmSolar, helping the company to expand its operations in Egypt while EDF advances on its own renewable energy goals.

Earlier this year it was awarded 10 MW of distribution capacity to launch the Marsa Alam Solar Grid, signing agreements with eight resorts to join the grid and developing dedicated PV power stations to contribute on-site renewable energy.

Also in 2022, KarmSolar signed a 22 MW power distribution agreement with MARAKEZ, a real estate developer, for its new mall in East Cairo.

Infrastructure advisory and project finance specialist Synergy Consulting has provided client services for numerous power and water projects in MENA, including green hydrogen schemes in Oman, desalination projects in Morocco, and others, as reported recently by Energy & Utilities.  

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