• The Farafra Solar Grid will allow for clients’ energy costs to be driven down significantly.
• It will also remove the burden of infrastructure, maintenance, and management operations of the farmers.
Image: COURTESY
Egypt-based cleantech company KarmSolar has received $3 million in debt financing from HSBC to finance the development of its Farafra Solar Grid.
This is the second grid solution after the Marsa Alam Solar Grid in Egypt.
The project aims to provide 60 per cent solar penetration with a three-year goal to reach 100 per cent.
This is projected to offset a total of close to 5200 tonnes of CO2 emissions annually.
KarmSolar was founded in 2011 by Ahmed Zahran, Xavier Auclair, Yumna Madi and Randa Fahmy.
The company provides several sectors in Egypt with renewable energy as part of its target to enlarge the private clean energy market.
The Farafra Solar Grid is a first-of-its-kind microgrid solution that utilises solar PV panels, a battery storage system and diesel generators in a centralised setup.
It operates under a usufruct agreement which then distributes the generated electricity to the different off-takers.
KarmSolar targets the grid solution to become fully operational by Q3 of 2023.
KarmSolar’s co-founder and CEO Ahmed Zahran said that the kickoff of the Farafra Solar Grid enables them to achieve their 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 towards investing in nonconventional projects like Farafra Solar Grid,” Zahran said.
HSBC Bank Egypt head of SME and Business Banking Yasmin Farid said that they are committed to supporting and financing the transition to secure a net zero future.
“We want to help our clients access sustainable and innovative finance solutions across all business sectors so they can make the investments needed to achieve their net zero goals,” Farid said.
Sisban For Agricultural Investment Group CEO Ali Al-Shareef said that the project not only promotes sustainability but also provides a reliable source of energy.
“We are proud to be setting an example of sustainability for other businesses to emulate as well as create a positive impact on the communities we serve,” Al-Shareef said.
The focus of the project is on the agricultural sector in the Farafra region, a sector known to be operating using decentralised diesel generator setups.
The grid solution will allow for clients’ energy costs to be driven down significantly.
It will also remove the burden of infrastructure, maintenance, and management operations of the farmers.
This is by providing cheaper kilowatt hours and competitive prices, allowing for more efficient optimization, in return, driving down carbon footprint and CO2 offset.