AfrElec: Egypt’s Karmsolar secures $2.8mn loan from HSBC Egypt to fund development of Farafra Solar Grid Project

Egypt’s Karmsolar, an independent renewable energy EPC, has secured a EGP83mn ($2.85mn) loan from HSBC Egypt to fund the development of the first phase of the Farafra Solar Grid Project in the Eastern Desert, according to a company press release.

The financing will go towards establishing a hybrid central plant to generate and sell energy using solar panels, diesel generators and industrial batteries at the Al-Enmaa Farm in Abu Minqar area in the New Valley governorate. It comprises the building of a 3.4-MW photovoltaic (PV) solar farm, the provision of a 3.7-MVA diesel generator, and the supply of a 4-MWh/1-MW solar battery storage system. 

The initial phase, to be completed by the third quarter (July-September) of 2023, aims to provide roughly 60% of the total project's electricity generation needs through solar energy. The company forecasts that solar energy generation capacity will be able to supply 100% of project needs within three years of the commencement of operations.