KarmSolar raises $3m in funding from HSBC

KarmSolar raises $3m in funding from HSBC

KarmSolar, a solar power developer and electricity distributor, raised EGP 83 million in debt financing from HSBC to develop the first phase of the Farafra Solar Grid. This accounts for $3 million.

Farafra Solar Grid is a microgrid solution that utilizes solar PV panels, battery storage systems, and diesel generators in a centralized setup, operating under a usufruct agreement, then distributing the generated electricity to the different off-takers. The current clients for the first phase are Juhayna and Nawa for Agricultural Investment.

The first phase of the Farafra Solar Grid will consist of a 3.4 MWp solar PV station, 3.7 MVA diesel generators, and a 4 MWh/1MW solar battery storage system. The project will allow for around 60% solar penetration aiming to reach 100% in three years’ time, offsetting almost 5,200 tons of CO2 emissions per year.

“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. It is very refreshing to see institutions like HSBC willing to focus their efforts and trust towards investing in nonconventional projects like the Farafra Solar Grid,” Ahmed Zahran, Co-founder and CEO of KarmSolar, said. 

The project aims to become fully operational by the third quarter of 2023, and will be KarmSolar’s second grid solution after the Marsa Alam Solar Grid

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