Egypt’s Karm, the renewable energy company widely known as KarmSolar, has officially stepped beyond its home market. Through a new subsidiary called KarmCyprus, the company has entered the Cypriot energy market — a strategic first move in its ambition to become a regional clean energy player across the Mediterranean.
KarmCyprus has already secured a license to build and operate a 7.6 megawatt (MW) solar photovoltaic plant in Monagroulli, in southern Cyprus. The plant is expected to be operational by September 2026 and will feed clean electricity into a power system that is still heavily dependent on fossil fuels. To fund development, the company finalized €5 million in project financing from EuroBank (formerly Hellenic Bank) in September 2025, a signal that the Cypriot financial ecosystem sees the project as both credible and bankable.
This is more than a single project. It represents the export of Karm’s full operating model. In Egypt, Karm built its reputation not just as a solar developer, but as a vertically integrated private utility. Its activities span electricity generation, distribution, energy storage, and even electric mobility solutions. In Cyprus, the company intends to replicate that model, not just sell power. That means providing energy directly to consumers and businesses, deploying storage to stabilize supply, and positioning itself for future electric vehicle infrastructure.
The timing is very intentional. Cyprus is at a turning point in its energy transition. The country has some of the highest energy prices in the EU, relies heavily on imported fossil fuels, and faces binding European targets to increase the share of renewables in its energy mix. The EU’s Renewable Energy Sources (RES) directive calls for Cyprus to reach 42.5% renewable energy penetration by 2030. At the same time, Cyprus has some of the best solar irradiance in Europe. In short: the island is sun-rich and energy-expensive. That is exactly the kind of market profile that attracts an independent solar utility.
For Karm, the expansion is also a currency and scale play. By operating in Cyprus, the company is diversifying its revenue base into hard currencies while stepping into a liberalizing European energy market. CEO Ahmed Zahran described the move as “a pivotal step in our journey to become a regional energy player,” noting that Karm has already invested €2 million to establish operations in Cyprus, supported by an additional €8 million raised from Egyptian and international investors. He also emphasized that KarmCyprus is not arriving as an outsider: it is partnering with local EPC (engineering, procurement, and construction) and O&M (operations and maintenance) providers, and pursuing land acquisitions for future solar and storage assets. The company is also exploring entry into electricity supply agreements and even EV-related ventures as the market opens.
From Cyprus’ perspective, the arrival of KarmCyprus supports a broader national shift. The country is preparing for electricity market liberalisation that would allow consumers to choose their supplier, rather than rely almost exclusively on traditional fossil-fuel-based generation. According to KarmCyprus CEO Yiannis Karis, this is about more than cheaper tariffs. It is about energy independence, system reliability, and aligning Cyprus with EU sustainability expectations while attracting foreign private investment into core infrastructure.
This move also reflects a deeper regional trend. Egypt and Cyprus are already in conversation at the government level on energy interconnection, including electricity links and gas cooperation. Karm’s entry shows that this collaboration is no longer just about state-to-state agreements; private sector players are starting to build the physical assets that will tie the eastern Mediterranean energy system together.
If KarmCyprus succeeds, it will not just be a proof point for Karm. It could be a model for how energy innovators from Africa can scale into European-adjacent markets — not as contractors, but as utilities in their own right.
