French state-owned utility EDF has consolidated its position in the Egyptian solar market by becoming a strategic shareholder in local PV project developer and independent power producer KarmSolar.
EDF said it agreed to inject unspecified funds into the Egyptian company. The money will be used by KarmSolar to expand a portfolio of solar plants which power commercial, agricultural and industrial clients through power purchase agreements or distribution contracts, EDF stated.
KarmSolar has a distributed PV project pipeline with a combined generation capacity of 165 MW in Egypt.
“Following the commissioning of our 130 MWp solar power plants in Benban recently, it further strengthens our long-term development strategy in Egypt,” said Frederic Belloy, executive VP for international operations at EDF Renewables. The installation he referred to was tendered in the second round of Egypt’s feed-in tariff scheme and will sell power to utility the Egyptian Electricity Transmission Company under a 25-year contract.
KarmSolar is among 16 approved PV installers for an Egyptian scheme to drive the take-up of small scale solar. Under the program, developers can reportedly secure financial support for up to 25% of “industrial-sector projects” costs, with a $250 subsidy available per kilowatt of generation capacity installed, up to a maximum grant of $37,500 for facilities with generation capacities of up to 150 kW.