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Solar power developer KarmSolar will develop a microgrid solution using solar PV panels and battery energy storage with a diesel back-up in the agricultural sector in Farafra, Egypt.
The electricity distributor announced the development of the Farafra Solar Grid, its second grid solution to cover 100% of clients’ load (after the MArsa Alam Solar Grid). Phase 1 of the Farafra Solar Grid will consist of a 3.4MWp solar PV station, 3.7 MVA diesel generators and a 4 MWh/1MW solar battery storage system, established under KarmSolar’s SPV – Mars for Selling and Distributing Electricity.
The project will allow for around 60% solar penetration aiming to reach 100% in three years’ time. This should allow a total of around 5,200 tons of CO2 emissions to be offset per year.
The Farafra Solar Grid is a first-of-its-kind microgrid solution in that it uses solar PV panels, a battery storage system and diesel generators in a centralised setup. It will operate under a usufruct agreement, then distribute the generated electricity to the different off-takers.
The current clients for Phase 1 are Juhayna and Nawa for Agricultural Investment, with room for future expansion to other operational clients in this area. The plan is for Farafra Solar Grid to be fully operational by the third quarter of 2023.
KarmSolar CEO and co-founder Ahmed Zahran said it is refreshing to see institutions like (funder) HSBC willing to focus effort and trust towards investing in a nonconventional project. “The kickoff of the Farafra Solar Grid enables us to achieve our vision of extending affordable, reliable solar energy to relatively inaccessible parts of the country,” explained Zahran.
Solar microgrid for optimisation of energy use
The solar grid project has received E£83 million in debt financing from HSBC for phase 1 with the support of Ezdaher Financial Consultancy. “HSBC is committed to supporting and financing the transition to secure a net zero future by helping our clients access sustainable and innovative finance solutions across all business sectors so they can make the investments needed to achieve their net zero goals,” said Yasmin Farid, Head of Small and Medium Enterprises and Business Banking, HSBC Bank Egypt.
The focus of this project is on the agricultural sector in the Farafra region, a sector known to be operating using inefficient, decentralised diesel generator setups. The Fararfra Solar Grid should help clients drive their energy needs down significant. It will also go a long way towards removing the burden of infrastructure, maintenance, and management operations of the farmers by providing cheaper kilowatt hours and competitive prices. This will create more efficient optimisation, in return driving down carbon footprint and CO2 offset.
Ali Al-Shareef, Group Chief Executive Officer of Sisban for Agricultural Investment, Nawa’s mother company, also called the project unique. “This project not only promotes sustainability but also provides a reliable source of energy that will enable us to become more efficient and effective in our operations,” he explained. |
