Egypt-based renewable energy leader KarmSolar has officially announced its first international expansion with the establishment of KarmCyprus, marking its entry into the Cypriot clean energy market. The move represents a strategic step in KarmSolar’s mission to decentralize access to renewable energy across the Mediterranean. With this expansion, the company seeks to replicate its successful integrated energy model in a new and promising market.
New Market Entry and Financing
KarmCyprus has secured a license to build and operate a 7.6-megawatt solar photovoltaic plant in Monagroulli, southern Cyprus. The facility, expected to begin operations by September 2026, will serve as a cornerstone for the company’s regional ambitions. To finance the project, KarmCyprus finalized €5 million in project financing from Eurobank (formerly Hellenic Bank) in September 2025, underscoring investor confidence in the firm’s technical and financial credibility.
Strategic Investment and Expansion Goals
The Cypriot subsidiary was established with an initial investment of €2 million from Karm, backed by an additional €8 million raised from Egyptian and international investors. The expansion extends Karm’s vertically integrated business model—spanning power generation, distribution, storage, and electric mobility—into a new market undergoing a significant energy transition. According to CEO Ahmed Zahran, this move reflects Karm’s ambition to become a regional energy player while diversifying revenue streams in hard currencies.
Cyprus’ Energy Transition and Market Potential
Cyprus presents a fertile ground for renewable energy investment, with high electricity prices, heavy dependence on fossil fuels, and one of the highest solar irradiance levels in Europe. The country is preparing for market liberalization and aims to achieve a Renewable Energy Sources penetration rate of 42.5% by 2030 in line with European Union directives. Karm’s entry aligns with this transition, offering competitive renewable energy solutions to consumers and industries seeking cleaner, more affordable power.
Local Collaboration and Infrastructure Development
KarmCyprus is collaborating with local engineering, procurement, and operations partners to ensure efficient implementation and compliance with regulatory frameworks. The company also plans to expand into power supply and energy storage through strategic partnerships and land acquisitions. Beyond solar generation, Karm intends to introduce its KarmWater and KarmCharge solutions, addressing the island’s growing demand for sustainable water and e-mobility infrastructure.
Industry and Regional Implications
The project symbolizes the deepening collaboration between Egypt and Cyprus in the energy sector, complementing regional initiatives such as proposed electricity interconnectors and gas partnerships. By establishing operations in Cyprus, Karm positions itself at the heart of the Mediterranean’s evolving clean energy network, bridging Europe and the Middle East. This move not only enhances energy independence and supply reliability for Cyprus but also promotes greater private-sector participation in regional sustainability efforts.
Leadership Perspective
Commenting on the milestone, Yiannis Karis, CEO of KarmCyprus, emphasized that the company is bringing a proven model of decentralized, privatization-led energy innovation to the island. He noted that consumers will benefit from competitively priced renewable electricity compared to fossil fuel tariffs, helping advance EU sustainability targets. For Karm, the expansion demonstrates the scalability and adaptability of its business model beyond Egypt’s borders.
KarmSolar’s launch of KarmCyprus represents more than just geographic expansion; it marks the company’s emergence as a Mediterranean energy player. Through strategic investment, collaboration, and innovation, the firm aims to accelerate the region’s transition toward clean energy and reinforce the role of the private sector in driving sustainability. With the Monagroulli solar project underway, KarmSolar stands poised to play a central role in shaping the next phase of the Mediterranean’s renewable energy transformation.