• Egypt-based solar energy utility Karm (KarmSolar) has announced its first international expansion with the establishment of KarmCyprus, marking its entry into the Cypriot renewable energy market.
• Founded in 2011 by Ahmed Zahran, Xavier Auclair, Yumna Madi and Randa Fahmy, KarmSolar provides several sectors in Egypt with renewable energy as part of its target to enlarge the private clean energy market.
• KarmCyprus secured EUR 5 million in project financing from Eurobank to construct a 7.6 MW solar PV plant in Monagroulli, southern Cyprus, expected to begin operations by September 2026.
• Karm invested EUR 2 million to establish its Cypriot subsidiary, supported by an additional EUR 8 million raised from Egyptian and international investors.
• The expansion replicates Karm’s vertically integrated energy model covering generation, distribution, storage, and e-mobility, underscoring the project’s bankability and credibility in the Mediterranean energy landscape.

Press release:

Karm (also known as KarmSolar), Egypt’s pioneering solar energy utility, announced today its official expansion into the Cypriot energy market with the establishment of KarmCyprus, the company’s first international venture. As part of this expansion, KarmCyprus has secured a license to build and operate a 7.6 MW solar PV plant in Monagroulli, located in southern Cyprus, and expected to be operational by September 2026. In September 2025, KarmCyprus finalized EUR 5 million in project financing from EuroBank (formerly Hellenic Bank) to support the PV plant construction. 

This milestone marks Karm’s entry into the Mediterranean energy market, replicating its successful vertically integrated business model, spanning power generation, distribution, storage, and electric mobility. It also underscores the project’s bankability and credibility within the Cypriot energy landscape. 

Karm has been exploring the Cypriot energy market for the past three years. The strategic move comes at a time when Cyprus is undergoing a major energy transition, preparing for market liberalisation and greater renewable energy integration in line with EU mandates. The expansion allows Karm to diversify its revenue streams into hard currencies while positioning itself as a private-sector leader in Mediterranean energy transformation. 

“KarmCyprus represents a pivotal step in our journey to become a regional energy player,” said Ahmed Zahran, CEO of Karm. “We invested EUR 2 million to help establish KarmCyprus and launch operations, supported by an additional EUR 8 million raised from Egyptian and international investors. The company is collaborating with both local EPC and O&M providers to ensure on-ground efficiency and compliance, while also expanding into power supply through strategic partnerships as well as land acquisitions for central solar generation plants and energy storage, alongside exploring new business ventures such as electric vehicles (EVs),” he added.

Cyprus is moving towards a more open, competitive landscape that allows consumers to choose their electricity supplier. Currently, it has high energy prices, a significant reliance on fossil fuels, and an EU-mandated Renewable Energy Sources (RES) penetration target of 42.5% by 2030, as well as one of the highest solar irradiance levels in Europe, which presents a unique opportunity for renewable energy developers. 

Yiannis Karis, CEO of KarmCyprus, commented, “We are bringing to Cyprus a proven model of decentralised, privatisation-led energy innovation. Consumers can expect access to competitively priced renewable electricity compared to traditional fossil fuel-based tariffs. The model promises increased energy independence, supply reliability, and a pathway to meeting the EU’s sustainability goals. For the industry, this marks a shift toward market liberalisation and foreign private investment in Cyprus’s energy infrastructure.”

The move coincides with growing collaboration between Egypt and Cyprus in energy infrastructure, including proposed electricity interconnectors and gas partnerships. This signals alignment at both governmental and private sector levels. Cyprus’ geographical location as a neighbouring country in the Mediterranean makes it an ideal target for Karm’s first expansion.