KarmSolar, a leading provider of integrated solar energy solutions, announced its expansion into the Cypriot energy market through the establishment of Karm Cyprus, marking the company’s first international venture outside Egypt. As part of this milestone, Karm Cyprus has obtained a license to build and operate a 7.6 MW photovoltaic (PV) solar power plant in Monagroulli, southern Cyprus, with operations expected to begin by September 2026.
In September 2025, Karm successfully secured €5 million in project financing from Eurobank (formerly Hellenic Bank) to support the development of the PV facility.
Strategic Entry into the Mediterranean Energy Market
This achievement marks KarmSolar’s entry into the Mediterranean energy market, following the successful implementation of its vertically integrated business model, which encompasses power generation, distribution, storage, and e-mobility solutions. The move underscores the confidence of financial institutions in the project’s bankability and its potential to contribute to Cyprus’s renewable energy transition.
Diversifying Revenue and Expanding Regional Leadership
This international expansion enables KarmSolar to diversify its foreign currency revenue streams while strengthening its position as a private-sector leader in renewable energy across the Mediterranean. Over the past three years, the company has conducted extensive market studies in Cyprus to identify opportunities aligned with its sustainability vision.
The strategic move comes at a pivotal time, as Cyprus undergoes a major transformation in its energy sector, preparing to liberalize its electricity market and integrate more renewable sources in line with European Union directives.
CEO Commentary: A Regional Leap Forward
Commenting on the expansion, Ahmed Zahran, CEO of KarmSolar, said: “Karm Cyprus represents a pivotal step in our journey to becoming a regional energy player. We have invested €2 million to establish the new entity and launch operations, along with an additional €8 million raised from Egyptian and international investors. To ensure project success, we are collaborating with local EPC (engineering, procurement, and construction) and O&M (operations and maintenance) service providers to maintain operational efficiency and regulatory compliance.”
He added that the company continues to expand its energy supply business through strategic partnerships and land acquisitions for centralized solar generation and energy storage projects, while also exploring new opportunities in electric vehicle (EV) infrastructure.
Cyprus: A Renewable Energy Hub in the Making
Cyprus is moving toward a more open and competitive energy market, allowing consumers to choose their electricity providers. The country currently faces rising energy prices and heavy reliance on fossil fuels, but aims to achieve 42.5% renewable energy usage by 2030, as mandated by the EU.
With some of the highest solar irradiation levels in Europe, Cyprus offers a unique opportunity for renewable energy developers to introduce innovative models that enhance both energy independence and cost efficiency.
Market Vision and Regional Cooperation
Yiannis Charis, CEO of Karm Cyprus, commented:“We are introducing a pioneering decentralized energy model to the Cypriot market, demonstrating the success of private-sector-led innovation. Consumers will gain access to competitively priced renewable electricity compared to conventional fossil-fuel-based tariffs, fostering greater energy autonomy and supply reliability while helping achieve EU sustainability targets.”
Charis added that the initiative marks a turning point for Cyprus’s energy liberalization, encouraging foreign private investment into the country’s power infrastructure.
Strengthening Egypt–Cyprus Energy Ties
This development aligns with the growing collaboration between Egypt and Cyprus in energy infrastructure, including proposed electricity interconnection projects and gas partnerships. The island’s strategic location in the Eastern Mediterranean makes it a natural choice for KarmSolar’s first European expansion and a potential hub for future cross-border energy cooperation.
