The financing comprises an A loan from the EBRD of US$ 27 million and a B loan of the same amount from the Netherlands Development Finance Company.The 60.3 MW photovoltaic (PV) power plant will be located in the King Hussein Bin Talal development area of the Mafraq region in north Jordan.
Operator ACWA Power
Operator ACWA Power is one of the leading developers, owners and operators of power generation and desalination plants in the Middle East. The project was the winning bidder in Jordan’s second solar tender, offering the lowest tariff. The project’s tariff of 6.14 US-Cents per kilowatt hour proves that renewables can compete with conventional technologies and shows that competitive tariffs can be achieved without reliance on subsidies or concessional financing.
Competitive tender process
The project follows the successful first round of the solar programme by the Jordanian Ministry of Energy and Mineral Resources in which the EBRD financed four out of 12 solar PV projects in 2014 and the 86 MW Al Rajef wind farm in October 2016. This programme demonstrated the benefits of a competitive tender process and established Jordan as a market leader for renewables in the region.
Improving affordability of electricity
Nandita Parshad, EBRD Director for Power and Energy, said: “We are very pleased to be partnering with our existing client ACWA Power to deliver this landmark transaction. It will provide electricity at a highly competitive price and supports the government’s goals of meeting rapid demand growth while improving the sustainability and affordability of electricity in Jordan.”
Renewable projects with more than 400 MW financed
Jordan became an EBRD country of operations in 2012. To date, the EBRD has committed €676 million through 30 projects in various sectors of the economy. This is the sixth large-scale renewable project financed by the EBRD in Jordan and brings the total capacity of projects financed by the Bank in the country to more than 400 MW.
Triple volume of investments in renewable energy
The EBRD’s strategic plan for the period 2016-18 has three priorities: strengthening economic resilience, addressing global challenges and supporting regional integration. In the context of the EBRD’s focus on Green Economy Transition since late 2015, the Bank expects to more than triple the volume of renewable energy financed in Jordan in the near future. (HCN)
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