By Abbas Nazil
KarmSolar is intensifying Egypt’s transition toward renewable energy with a planned investment of $110m over the next three years, expanding its national solar infrastructure while launching its first international project in Cyprus.
The company, led by CEO Ahmed Zahran, is targeting key regions across Egypt with three major projects designed to boost electricity generation, expand private-sector participation and improve energy reliability for industrial, agricultural and tourism sectors.
At the center of the company’s domestic expansion is a 100 MW solar plant developed under Egypt’s new Private-to-Private framework, which allows private producers to sell electricity to private consumers through the national grid.
As one of only four companies selected to pilot the scheme, KarmSolar’s special purpose vehicle Neptune will supply industrial clients in the New Valley Governorate, marking a significant step in Egypt’s electricity market liberalisation.
Zahran describes the project as a long-term investment in energy security and a milestone in the country’s efforts to decentralise power generation.
The company is also expanding the Farafra Solar Grid, increasing contracted supply capacity from 3.2 MVA to 8.37 MVA while raising solar utilisation from 30% to 60% through improved battery storage.
Serving 64,000 acres of agricultural land, Farafra aims to reach 100% solar dependency to lower emissions, reduce operational costs and stabilise power availability for agribusinesses that face chronic fuel challenges.
In Marsa Alam, KarmSolar is upgrading the region’s first private-licensed grid with a 10 MW hybrid system that connects nine resorts, replacing diesel generators and reducing energy costs by up to 60%.
The company’s water subsidiary, KarmWater, has also launched Marsa Alam’s first solar-powered desalination plant, producing 300 cubic meters of clean water daily at 25% less cost than conventional systems.
Zahran says these initiatives reflect an integrated development model that includes energy production, distribution networks, storage systems and water solutions for long-term sustainability.
KarmSolar is focusing on regions with strong economic activity but persistent energy limitations, supporting agriculture, tourism and now industry under the new P2P scheme.
Zahran notes that the strategy aligns with national goals to increase renewable energy penetration and expand opportunities for private investors, especially as Egypt promotes green hydrogen and regulatory reforms.
He adds that the company prioritises economic viability over environmental branding, arguing that renewable energy has become mainstream and must be commercially competitive to attract investment.
Although interest-rate and currency fluctuations pose challenges for imported components and financing, KarmSolar is exploring green bonds and even a potential IPO to diversify its investor base.
Internationally, the company is entering Cyprus through KarmCyprus, led by CEO Yiannis Karis, who says the island’s market size, regulatory support and access to EU networks make it an ideal starting point for regional expansion.
KarmSolar’s Cyprus project secured €5m in financing from Eurobank, €2m from Karm and €8m from Egyptian and international investors, reflecting strong confidence in the company’s renewable-energy model.
Karis says collaboration with local engineering, procurement and maintenance firms was key to meeting Cypriot standards and ensuring smooth regulatory approvals.
He views Cyprus as a strategic hub that connects KarmSolar’s North African expertise with Europe’s energy landscape and positions the company for future projects in southern Europe, the Levant and Mediterranean islands.
Zahran says the long-term vision is to build a regional renewable-energy utility integrating generation, distribution, storage and electric mobility solutions.
With major investments underway in Egypt and a growing presence in Europe, KarmSolar aims to reshape energy access and support sustainable economic growth across the Eastern Mediterranean and beyond.
