Egypt’s Solar Energy Company KarmSolar Secures $3 Million From HSBC
Summary
The new development is the companys second solar grid after the Marsa Alam Solar Grid.Founded in 2011 by Ahmed Zahran, Xavier Auclair, Yumna Madi and Randa Fahmy, KarmSolar provides numerous sectors in Egypt with renewable energy to expand the use of clean energy in the Egyptian market. "The kickoff of the Farafra Solar Grid enables us to achieve our vision of extending affordable, reliable solar energy to relatively inaccessible parts of the country, Ahmed Zahran, Co-Founder and CEO of KarmSolar, tells StartupScene. It is anticipated that the new project will provide 60% solar penetration, with the goal of reaching 100% in three years.The new solar grid will mainly be used in the agricultural sector in the Farafra region, which mainly relies on diesel generator setups, to help bring down energy costs and reduce carbon footprint.The company claims that the new grid will be the first of its kind microgrid solution that will use solar PV panels, battery storage system, and diesel generators in a centralized setup.Companies opting to use phase 1 of the project include Juhanya and Nawa for Agricultural Investment to date.The financing of the Farafra Solar Grid follows KarmSolars recent funding of $2.4 million to deploy battery solutions in Egypt.The new solar project is expected to become fully operational by Q3 2023.Egypt is a leading startup ecosystem in MENA. Despite the global funding crunch of 2022, Egypt managed to surpass total funding received in 2021, recording 205% YoY growth compared to the previous year, according to data platform Magnitt. While fintech received the lions share of funding, cleantech is still considered a strong emerging sector with investors like British International Investments deploying $100 in local startups to support the countrys green growth, and Egypt initiating the ClimateTech Run competition during COP27 of up to $100k for startup-finalists.