EDF Renewables, the clean energy arm of French energy giant Électricité de France (EDF), entered in a strategic partnership, and acquired a stake in Egyptian solar firm KarmSolar by taking part in a reserved capital increase.
In a Monday press statement, EDF Renewables will make a capital investment to become a strategic shareholder in the solar company, with which it has also agreed on a strategic partnership in the development of solar energy in Egypt.
On 4 November, a source close to the deal told Daily News Egypt that this comes within EDF plan for expanding investment in the Egyptian market, adding that after completion, KarmSolar would likely put a percentage of the company for an IPO.
KarmSolar operates as an independent power producer (IPP) and provides electricity to large commercial, agricultural, and industrial clients under power purchase agreements (PPAs).
According to the statement, its assets include a 170MW solar park in Egypt, in operation, under construction and advanced development.
The move is in line with EDF’s goal to double its installed renewables capacity to 50 GW between 2015 and 2030. “This partnership is fully in line with EDF Renewables strategy to offer relevant solutions helping Commercial & Industrial customers achieving their low carbon ambitions through the production and consumption of a competitive renewable energy,” said Frederic Belloy, executive vice president international operations for EDF Renewables.
Ahmed Zahran, CEO and Co-Founder of KarmSolar, said, “This investment constitutes a new major step to support our growth, and we are confident that EDF Renewables is the right partner to help take KarmSolar to the next phase of its expansion.”
“Throughout our conversations with EDF Renewables, it was very clear that they believed in what we want to achieve – which is to promote renewable energy and to make solar power more accessible,” he added.
Amr El Sawaf, Chairperson of KarmSolar, said “This is a major milestone in the development of our company, that ambitions to propel its expansion forward. EDF Renewables is not only an investor, but a strategic partner whose global expertise will extend KarmSolar’s local reach and further increase its technical capabilities. It is envisioned that this investment will also boost the private Egyptian solar market and thus support the government in implementing its vision of becoming a renewable energy hub for the region.”