KarmSolar, a firm that develops and distributes solar energy, has announced the creation of the Farafra Solar Grid, its second grid solution after the Marsa Alam Solar Grid, which will supply all of the load for customers.
A 3.4 MWp solar PV plant, 3.7 MVA diesel generators, and a 4 MWh/1 MW solar battery storage system will make up Phase 1 of the Farafra Solar Grid and will be installed under KarmSolar’s SPV, Mars for Selling and Distributing Electricity. To offset a total of about 5,200 tonnes of CO2 emissions each year, the project will allow for about 60% solar penetration with the goal of reaching 100% in three years.
Farafra Solar Grid is a first-of-its-kind microgrid solution that employs solar PV panels, battery storage, and diesel generators in a centralised setup while operating under a usufruct agreement. It aims to be fully operational by Q3 2023 and then distributes the generated electricity to various off-takers. Juhayna and Nawa are the present clients for Phase 1 of Agricultural Investment, but there is plenty of space for future expansion to include more operational clients in this region.
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“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.”- KarmSolar’s Co-founder and CEO Ahmed Zahran commented.
With the assistance of Ezdaher Financial Consultancy, HSBC provided debt finance for the solar grid project in the amount of EGP 83 million for phase 1. Yasmin Farid, Head of Small and Medium Enterprises and Business Banking, HSBC Bank Egypt, said, “HSBC is committed to supporting and financing the transition to secure a net zero future by helping 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.
“Through our partnership with Kamsolar, we are delighted to have successfully implemented a unique project that provides solar power to Alfarfra Farm. This project not only promotes sustainability but also provides a reliable source of energy that will enable us to become more efficient and effective in our operations. We are proud to be setting an example of sustainability for other businesses to emulate, as well as creating a positive impact on the communities we serve.” said Ali Al-Shareef, Group Chief Executive Officer of Sisban For Agricultural Investment, Nawa’s mother company.
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This initiative focuses on the Farafra region’s agriculture industry, which is notorious for using ineffective, dispersed diesel generator sets. By offering cheaper kilowatt hours and competitive prices, the Fararfra Solar Grid will enable clients’ energy costs to be significantly reduced as well as remove the burden of infrastructure, maintenance, and management operations on the farmers. This will allow for more efficient optimization, which will reduce carbon footprint and CO2 offset.
KarmSolar KarmSolar
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard