EDF Renewables, the clean energy subsidiary of energy utility EDF, has agreed to invest an amount reported by Energy Egypt to be up to $25m in Egypt-based solar energy provider KarmSolar.
Founded in 2011, KarmSolar oversees 165 MW of solar photovoltaic power plants that are either operational, being built or in advanced development, and the EDF investment will fund the expansion of that portfolio.
Although the companies have not disclosed details of the amount, sources familiar with the matter told the Egyptian media earlier this month the corporate was set to provide up to $25m in return for a minority stake.
The Egyptian government has set a target of sourcing 20% of its energy from renewable sources by 2022 and 42% by 2035. Wind and hydro power will be responsible for part of that amount but solar is expected to make up more than half of the capacity.
EDF brought two 65 MW solar projects online last month in Benban, in Egypt’s western desert, as part of a larger solar complex with a projected 1.8 GW capacity. It now operates 2.5 GW of solar capacity worldwide, 180 MW of which is in North Africa.
Frederic Belloy, EDF Renewables’ executive vice-president of international operations, said: “This partnership is fully in line with EDF Renewables strategy to offer relevant solutions helping commercial and industrial customers achieving their low carbon ambitions through the production and consumption of a competitive renewable energy.
“This investment is also in compliance with EDF international strategy, North Africa representing a great potential for development. Following the commissioning of our 130 MW solar power plants in Benban recently, it further strengthens our long-term development strategy in Egypt.”
Photo courtesy of KarmSolar.
