Egypt-based solar energy utility Karm has announced its first international expansion, entering the European renewable energy market with the establishment of KarmCyprus. The venture is backed by EUR 5 million in project financing from Eurobank, marking a significant milestone in the company’s ambition to become a regional energy player.
Securing a Mediterranean Foothold
KarmCyprus has secured a license to construct and operate a 7.6 MW solar PV plant in Monagroulli, southern Cyprus. The project, supported by the EUR 5 million in financing from Eurobank, is slated to begin operations by September 2026. This development underscores the bankability and credibility of Karm’s model in the competitive Mediterranean energy landscape. The company’s own initial investment of EUR 2 million to establish the Cypriot subsidiary was bolstered by an additional EUR 8 million raised from a mix of Egyptian and international investors.
Strategic Move into a Liberalising Market
After three years of exploring the Cypriot market, Karm’s expansion is strategically timed. Cyprus is currently undergoing a significant energy transition, preparing for market liberalisation and aiming to meet an EU-mandated Renewable Energy Sources (RES) penetration target of 42.5% by 2030. The island nation’s high energy prices, reliance on fossil fuels, and exceptional solar irradiance levels present a prime opportunity for renewable energy developers. This move also allows Karm to diversify its revenue streams into hard currencies. “KarmCyprus represents a pivotal step in our journey to become a regional energy player,” said Ahmed Zahran, CEO of Karm.
Replicating Egypt’s Vertically Integrated Model
Karm intends to replicate its successful, vertically integrated business model in Cyprus, which covers power generation, distribution, storage, and electric mobility. The company is collaborating with local partners for construction and operations while simultaneously exploring opportunities in power supply, land acquisition for future solar and storage plants, and new ventures like electric vehicles (EVs). Yiannis Karis, CEO of KarmCyprus, commented, “We are bringing to Cyprus a proven model of decentralised, privatisation-led energy innovation. Consumers can expect access to competitively priced renewable electricity compared to traditional fossil fuel-based tariffs.”
About Karm
Founded in 2011 by Ahmed Zahran, Xavier Auclair, Yumna Madi, and Randa Fahmy, Karm (also known as KarmSolar) is a pioneering solar energy utility in Egypt. The company provides various sectors with renewable energy solutions through a vertically integrated business model, aiming to expand the private clean energy market in the region.
Source: Wamda
