Egypt-based Karm Holding, formerly known as Karm Solar, has signed a land allocation agreement with Egypt’s Tourism Development Authority for 500,000 square metres (sqm) in Marsa Alam to develop the first phase of a solar power project, the company said on Wednesday.
According to the company’s press statement, the land, located south of Marsa Alam Airport, forms part of a wider targeted allocation of 2 million sqm. The first phase is scheduled to be implemented within 36 months following the completion of all required procedures, with a planned production capacity of up to 40 megawatts (MW).
Karm Holding said it has already begun development procedures for the first phase.
Designed as an off-grid system, the solar power plant will use a dedicated distribution network and transformer station to supply electricity to tourism and service developments in the Marsa Alam area.
The model is intended to reduce dependence on diesel generators, lower operating costs, and cut carbon emissions.
The statement said the project is being developed in cooperation with the Tourism Development Authority and the New and Renewable Energy Authority (NREA).
The project also marks the first time the Tourism Development Authority has allocated land for a renewable energy project under a usufruct model linked to a 2 percent revenue share.
Details about project costs, power purchase agreements weren’t disclosed but Karm Holding said the framework mirrors structures used in earlier projects implemented in partnership with Al Wadi Al Gedeed Governorate.
The company said the Marsa Alam solar facility is expected to serve multiple tourism-sector clients, with feasibility studies underway to integrate battery energy storage systems (BESS) to manage fluctuating demand, particularly during peak nighttime consumption. It is also assessing opportunities to integrate the project with its subsidiary, Karm Water, to support desalination requirements in the region.
Chief Executive Officer Ahmed Zahran said the Marsa Alam project reflects the company’s strategic transition from Karm Solar to Karm Holding, now positioned as a diversified group operating across solar power generation, energy distribution, storage systems, electric vehicle charging infrastructure, sustainable construction and water solutions.
Zahran added that the integrated platform enables Karm Holding to deliver comprehensive clean-energy and sustainability solutions across multiple sectors, supporting Egypt’s Vision 2030 energy strategy while introducing more flexible public-private partnership (PPP) models that generate sustainable returns for the state.
French utility giant EDF power solutions is the largest shareholder of Karm Solar.
In November 2025, solar news website Solar Quarter reported that Karm Solar’s largest planned development is a 100 MW solar plant under Egypt’s new Private-to-Private (P2P) electricity framework. Developed by its special purpose vehicle, Neptune, the project will supply industrial consumers in the New Valley Governorate via the national grid.
(Writing by Majda Muhsen; Editing by SA Kader)
(anoop.menon@lseg.com)
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