Photos: KarmSolar
Markets & Trends
The KarmSolar team (seen above) aims to bring solar power to those who live away from the electricity grid in
Egypt. Despite the state of politics and social unrest in the country, the company is growing and moving forward.
Ray of light
Egypt: Times are tumultuous in Egypt. Amidst the political and social unrest, one
domestic company is trudging forward to bring solar power to those who need it the
most in the country. A look at KarmSolar S.A.E’s journey and ambition in Egypt.
Egypt is the largest non-OPEC oil producer, and the second largest dry natural
gas producer in Africa. This is according
to the U.S. Energy Information Administration. According to the same sources, in
2010, almost all of the energy consumption was met by oil and natural gas at 41%
and 46% respectively. The remainder was
supplied by coal and renewable energy
sources. The domestic power demand has
also steadily increased, with natural gas
exports having fallen since 2009 thanks
to increasing Egyptian consumption. The
electricity consumption rates are increasing much quicker than capacity expansion and the government has plans to
34
invest in the power sector. Egypt has
decided that its aim is to derive 12 to 20%
of its electricity from renewable energy
by 2020. Financing should come from
the private sector, international organizations, and renewable energy funds.
However, this promise amidst political
tumult and foreseeable red tape, seems
to point to a pipe dream.
This is where Ahmed Zahran, CEO and
cofounder of Egyptian solar company
KarmSolar, decided to take the bull by
the horns. Zahran, with his team, decided
to take the interest in solar energy solutions and turn it into a reality in Egypt for
those in need of clean and reliable elec-
tricity. For starters the country has the
most basic condition for successful solar
power generation: plentiful sunshine (see
“Direct Normal Irradiation” map, p. 35).
“It is one of the best countries in the
world for solar resources, but it is also one
of the countries where solar investment is
minimal. But you can imagine the potential,” Zahran tells pv magazine.
The limited grid
The whole idea behind KarmSolar was to
form a company that would work in an
off-grid environment. Zahran explains
that geographically around 92% of Egypt
is off-grid. A vast majority of Egyptians
10 / 2013 | www.pv-magazine.com
Markets & Trends
of reliability for example, Zahran tells
pv magazine, diesel is often mixed with
water or other additives, hence affecting
the energy derivation potential and the
generators that use them. Diesel is also
sometimes simply not available, even if
customers are willing to pay the high
price. KarmSolar, with its solar solutions
is able to provide end customers with a
source of renewable energy that solves
these three problems.
A business model without grants
Egypt has its own New and Renewable
Energy Authority (NREA), established
in the 1970s. On the authority’s website
its strategy target is stated as: “to satisfy
20% of the electric energy demand from
renewable energy resources by 2020, 12%
from wind power and 8% from others,
including solar.” The NREA also claims
that the total capacity of PV systems in
the country is now about 5.2 MW, mainly
used for lighting, water pumping, wireless communications, cooling and commercial advertisements on highways. The
NREA also completed a PV project in
December 2010 in cooperation with the
Italian Ministry of Environment to elec-
Map: GeoModel Solar s.r.o.
are reliant on the power grid which is
limited to 8% of the space. Many agricultural and industrial processes are taking place in regions that are off the grid.
This means the economic potential of
the country lies in the geographic areas
that are off the grid. Hence KarmSolar
ventures to provide energy solutions for
these geographical regions.
“If you want to undertake any industrial or agricultural activities that are
away from the grid, then you have to
ensure that diesel trucks can access
these areas. In the current environment, energy is becoming more expensive. Diesel is becoming more of a hassle.
The government provides an 80% subsidy
on the price of diesel, but you never buy
it at the subsidized price and there is a
black market that creates a scarcity,” Zahran explains. This leads to people having
to pay higher prices for diesel despite
subsidies.
Under these circumstances, KarmSolar’s ambition is to provide products that
resolve three issues: insecure prices of
power; unreliable power; and unavailable
power. Pricing as previously mentioned is
insecure when it comes to diesel. In terms
Egypt has optimal conditions for the generation
of solar power.
trify two remote settlements in Matrouh
Governorate. Domestic feed-in tariffs
and subsidies for renewable energy are
nonexistent at the moment.
Zahran however does not believe in the
system of subsidies and grants. “We have
taken a position against subsidies and
grants because they have corrupted the
market. Look at Italy and Spain and the
aftermath of these subsidies. The renewAdvertisement
Markets & Trends
Projects and solutions by KarmSolar
Al Tayebat farm project: KarmSolar
and WorldWater & Solar Technologies
implemented a 50 kW off-grid solar water
pumping facility on Al Tayebat farm in the
Bahariya Oasis in Egypt. The 50 kW solar
farm powers a 30 kW submersible pump
that has an average flow rate of 120 cubic
meters per hour. The well which is powered
by solar serves a pivot irrigation area of
around 120 acres.
Solar water pumping: KarmSolar partnered up with WorldWater & Solar Technologies to develop the MENA region’s first
battery-free off-grid solar water pumping
solution. This project was designed to operate motor pumps reaching up to 600 horsepower. The project is a standalone hybrid
solution that relies only on solar power.
The solar energy management services
and support are done via the Solar Management Interface, a data-driven software
application that is powered by KarmSolar.
The solar aspect is also custom-designed to
adapt to the power needs of submersible
pumps and can be scaled easily to meet
changing energy demands, which in turn
allow the drawing of water at increasing
depths.
Solar building solution: KarmSolar has
teamed up with Atelier Kafrawi to introduce
a fully integrated solar building solution.
able energy market existed because they
were paying hefty subsidies. Now with
the economic crisis they cannot afford
it,” he explains.
This solution allows symbiosis with local
architecture developed with natural earth
materials. It is thus integrated into local
buildings. A battery system is also included
for storage of solar power to meet energy
needs in the nighttime. The design also
includes access to the Solar Management
Interface that is a data driven software
application which extends energy management services and support to the client
enabling optimum energy management.
The solar building solution was also applied
on the company’s workshop office in the
Bahariya Oasis. The earthen building is connected to a 7.5 kW solar power source.
KarmSolar is also currently working on
Egypt’s first solar village designed to host
around 500 workers (see photo above). It is
set to run completely on solar energy. The
construction phase has begun and the village is expected to be completed in March
2014.
Mobile MaxPure solar purification and
desalination: KarmSolar has also in its
offering the Mobile MaxPure solar desalination system. This is a standalone solar powered system that is designed to pump, filter
purify and desalinate water. The company
says the system is ideal for use in off-grid
locations in regions where solar resources
are plentiful. WorldWater & Solar Technologies were involved in the design and development. This solution can provide an average of 113,000 liters of clean drinking water
per day from wells, rivers, lakes and other
freshwater sources 24 hours, 7 days a week.
From seawater and brackish water sources
which are purified and desalinated via
reverse osmosis, the system can provide a
reliable supply of an average of 15,000 liters
of clean drinking water, says the company.
A 3.3 kW folding solar array powers the system and a 31 kWh gel battery bank provides
power at night.
Egypt has been provided with grants
though to undertake renewable energy
projects. This year in May, news agency
Reuters reported on a solar power pro-
duction scheme across North Africa and
the Middle East. The Climate Investment
Funds (CIF) expressed support for such a
scheme to the tune of $660 million. Egypt
KarmSolar takes a position against the provision of grants and subsidies. Zahran believes strongly that the message sent with such subsidies and grants is
that renewable energy projects are only possible with such aid and otherwise, not economical.
36
10 / 2013 | www.pv-magazine.com
Know-how and supply
PV know-how is also something that is important, especially in
newer markets. “Our first project was commissioned in April
this year: a 50 kW solar farm. But believe it or not, this is the biggest solar energy transaction in the private sector in Egypt,” Zahran says. The company decided to acquire the know-how and is
now developing their own methods. The KarmSolar CEO argues
that since the general perception in Egypt about solar is that it
is expensive and depends on aid, nobody has been trying it out.
So far, there have been two types of players in the Egyptian
market: those who represent the PV manufacturers and their
products as agents in Egypt, and those who undertake small projects like solar power for mobile towers. Zahran says that these
are not exactly the companies you would want to work with in
terms of know-how. PV requires specific know-how and KarmSolar thus decided to acquire and develop this knowledge themselves. Currently the company is getting its solar components
from global suppliers.
Domestic manufacturing
China, Europe and the U.S. are currently the main hubs where
most of the manufacturing is occurring. The market is dominated by these manufacturers. Zahran sees the possibility for a
solar manufacturing hub in Egypt. “Currently we do not have
proper PV manufacturers,” Zahran says, adding, “Without
R&D investment, the technology quickly becomes obsolete.
That is what we are missing in Egypt: PV manufacturers who
invest strongly in R&D. Currently we have two factories that
assemble panels. There is no production.” Hence there is a need
to have development in the manufacturing segment.
Zahran says that in order for solar manufacturing to get off its
feet in Egypt, the “old money out, new smart money in” concept
has to be implemented. “We have thousands of big businessmen
who control the economy at the moment, the Mubaraks and the
Mursis who channel the money into so-called ‘risk-free’ ventures. What we need is new smart money that goes into companies like KarmSolar and other startups that are working on
technology development. It is about moving the economy to
more value-added processes,” Zahran adds.
When asked if the company would be interested in venturing into PV manufacturing, Zahran tells pv magazine that
KarmSolar is very focused at the moment on providing off-grid
energy solutions. “We are a solar integrator and I do not know
if we will venture into manufacturing. But we will definitely
encourage those who want to manufacture in Egypt because
that will increase our competitiveness.” S
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is also included in this scheme. An additional $5 billion from
donors and private financing is also expected to flow into this
region, with concentrated solar power plants in the plans in
Egypt as well. Zahran believes strongly that the message sent
with such subsidies and grants is that renewable energy projects are only possible with such aid and otherwise, not economical. In addition, it implies that such projects can only be implemented via the government because that is where the money is.
“Our business model is based on a totally different assumption.
We are providing a product that is cheaper, easier to use and
sustainable. We had to hence take a position against grants and
subsidies. We do not accept grants or subsidies,” he explains.
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Habib Ali
10 / 2013 | www.pv-magazine.com
MEET US: SPI ’13 | 21 - 24 October 2013
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