The Tourism Development Authority is allocating land for renewable energy projects for the first time, with Cairo-based Karm Holding (formerly Karm Solar) securing the inaugural deal: a 500k sqm site south of Marsa Allam Airport for a 40 MW off-grid solar plant. The usufruct agreement includes a 2% revenue share — a new model for TDA, which has previously only allocated land for hotels and resorts.

By the numbers: The site, regulated by TDA and the New and Renewable Energy Authority, is separate from Karm’s existing land in the area and part of a broader 2 mn sqm allocation. Construction could begin as early as 1Q 2026 if final approvals come in time, with first power expected within 36 months, a Karm spokesperson tells us.

The plant will serve multiple tourism customers via a dedicated distribution network and substation. Battery storage is expected to be part of the design to handle overnight demand. Karm is also studying desalination projects in the area through subsidiary KarmWater.

Why it matters: The transaction signals that the Madbouly government sees private solar as critical infrastructure for tourism in remote areas like Marsa Allam, where operators have historically relied on diesel generators. The off-grid model allows decentralized power without waiting for grid extension — and offers a template for other underserved tourism zones while burnishing the industry’s sustainability credentials.

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