KarmSolar, Egypt's leading solar energy utility provider, is expanding the Farafra Solar Grid through a strategic partnership with Daltex, the world's largest exporter of potatoes. Under this agreement, KarmSolar will supply 2 MVA of electricity to Daltex, along with 3.17 MVA to Al-Mazare' for Food Manufacturing and Cooling and Al Hoda for Land Rehabilitation and Cultivation. This expansion will triple the grid's total contracted electricity capacity to 8.37 MVA. Introduced in 2023, the Farafra Solar Grid is Egypt's first hybrid microgrid, integrating solar PV panels, battery storage systems, and diesel generators into a centralized power distribution network. This model is designed to reduce reliance on diesel, lower carbon emissions, and provide sustainable, cost-effective energy to agricultural businesses operating in off-grid areas. With the latest expansion funded through equity investments, the grid's utilization rate has risen from 35% to 75%, demonstrating its scalability and efficiency. Daltex, which manages 40% of Farafra's targeted agricultural land, spanning 64,000 feddans, plays a key role in the region's transition to renewable energy. Mahmoud El Naggar, Head of Strategic Planning and Procurement at Daltex, emphasized that transitioning to sustainable energy in agriculture is not just about adopting renewables but about ensuring reliable and cost-effective solutions for large-scale farming. He noted that Daltex's operations heavily rely on nighttime energy, making the balance between sustainability and operational needs a challenge. Through its collaboration with KarmSolar, the company has successfully implemented an energy solution that aligns with its business goals and broader commitment to environmental responsibility. Ahmed Zahran, CEO and Co-founder of KarmSolar, reaffirmed the company's vision of building a reliable power grid in Farafra with the long-term objective of achieving 100% solar dependency. He highlighted that the expansion reflects the increasing demand for centralized, solar-powered energy solutions in Egypt's agricultural sector. By investing in scalable generation and distribution infrastructure, KarmSolar is driving long-term sustainability and enhancing operational efficiency in the region. Phase 1 of the Farafra Solar Grid was launched in January 2023 with EGP 83 million in debt financing from HSBC. This funding supported the development of a 3.4 MWp solar PV station, 3.7 MVA diesel generators, and a 4 MWh/1 MW battery energy storage system (BESS). Established under KarmSolar's special purpose vehicle, Mars for Selling and Distributing Electricity, and in partnership with Enmaa and Nawa for Agricultural Investment, the project was initially designed to achieve 60% solar penetration, with a target of reaching 100% within five years. This latest expansion marks a significant step forward in Egypt's renewable energy transition, reinforcing KarmSolar's leadership in providing sustainable energy solutions for off-grid agricultural operations.
