The company has secured a license to build and operate a 7.6-megawatt solar photovoltaic plant in Monagroulli, southern Cyprus. The plant is expected to begin operations by September 2026. In support of the project, KarmCyprus finalized a five-million-euro financing agreement with Eurobank (formerly Hellenic Bank) last month.
Karm invested two million euros to establish its Cypriot subsidiary and raised an additional eight million euros from Egyptian and international investors to fund its expansion. The company will work with local engineering and operations partners to ensure compliance and efficiency, while also exploring future ventures in electric mobility and energy storage.
The move comes as Cyprus prepares to liberalize its energy market and increase its share of renewable energy in line with European Union targets.
The country currently faces high electricity prices and remains heavily dependent on fossil fuels. With one of the highest levels of solar irradiance in Europe, Cyprus offers a promising opportunity for solar energy developers.
KarmSolar CEO Ahmed Zahran said the expansion reflects the company’s ambition to become a regional energy player. “KarmCyprus is a strategic step that allows us to replicate our integrated energy model and diversify our revenue streams,” he said.
Yiannis Karis, CEO of KarmCyprus, said the company aims to offer consumers access to competitively priced renewable electricity and support Cyprus’s energy independence. “We are introducing a proven model of decentralized, private-sector-led energy innovation,” he said.
The launch of KarmCyprus coincides with growing energy cooperation between Egypt and Cyprus, including proposed electricity interconnectors and gas infrastructure projects. The expansion reflects alignment between both governments and the private sector, with Cyprus’s location offering a natural gateway for Egyptian energy investment in the Mediterranean.
As a model for regional gas collaboration, Egypt and Cyprus are moving forward with plans to connect Cypriot offshore gas fields to Egypt’s energy infrastructure, alongside completing a joint electricity interconnection project. The initiative is part of the broader Egyptian-Cypriot-Greek trilateral cooperation framework, which officials have praised for strengthening regional energy ties.
Egypt and Cyprus are collaborating on energy through agreements to export Cypriot natural gas via Egypt's infrastructure to Europe, a deal involving Italy's Eni.
Additionally, both nations are working on a potential electricity interconnection project to send Egyptian renewable power to Europe through Greece, with studies underway. These partnerships aim to create a regional energy hub and boost energy security and exports for both countries and Europe.
Short link: