KarmSolar finalized a power purchase agreement (PPA) for two solar plants with subsidiaries of the Dakahlia Group, PV Tech reports.
The solar projects will have a combined capacity of 23.5 megawatts and will cost $23 million.
The plants will be located in Minya and Wadi Natroun and will supply 75% of the energy needs of Dakahlia South Valley Poultry and Dakahlia Wadi El Natroun.
KarmSolar claims the PPA was the largest of its kind signed in the country.
“This is a critical milestone in the brief history of KarmSolar. KarmPower, our subsidiary, is going to become through this deal the largest private sector solar energy provider in the country. Not only that, but it will provide the power at a lower cost than the government,” KarmSolar’s CEO and co-founder, Ahmed Zahran, told the media.
Investments in solar projects have been increasing in Egypt. The European Bank of Reconstruction and Development (EBRD) will provide $28.5 million in financing for a solar plant in Aswan, Egypt Oil & Gas reported. The solar plant will be built in Benban, Aswan, by Alfanar Energy. Upon completion, it will have the capacity to generate 50 megawatts of energy.
ACWA Power has also agreed to build and operate three solar photovoltaic power plants in Benban with an estimated cost of $190 million, Egypt Oil & Gas reported in August.
The Dakahlia Group specializes in foods and agriculture.