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.
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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.