Jordan will sign a loan agreement with Japan’s International Cooperation Agency (JICA) to finance a 200 MW solar photovoltaic power plant.
The station is scheduled to be built in the area of ”Al-Muwaqqar” in the capital Amman. Baynouna Solar Energy Company (BSEC), a special-purpose firm owned by Masdar and the Finnish asset finance group (Taaleri), will develop and operate it. The company has acquired 30% of the project during this month. Moreover, the station is estimated to cost about $ 260 million, making it the largest in Jordan.
The International Finance Corporation (IFC) and the OPEC Fund for International Development will co-finance the loan. However, it did not specify the amount of the loan.
The station aims to promote energy diversification in Jordan as the plant is expected to produce 563 GWh per year, equivalent to 3% of Jordan’s total energy consumption. It will also provide a clean alternative to 1.4 billion liters of imported crude oil, which will reduce carbon dioxide emissions by 360,000 tons.
Masdar and the (state-owned) National Electric Power Company have a power purchase agreement (PPA) in place for the plant and commissioning is planned for early 2019.
The plant will operate along with Masdar’s 117 megawatts “Al-Tafila” wind farm power plant, which will provide 15% of Jordan’s domestic electricity needs from renewable sources. The two projects will provide a total of 18% of the 1.8 GW of renewable sources, and about 20% of all the energy sources that Jordan plans to install by 2020.
Also worth mentioning that Jordan currently relies on importing 97% of its fuel needs, which makes it vulnerable to changes in fuel prices.
The 200MW solar power plant and Masdar’s 117 MW Tafila windfarm will help Jordan reach its goal of producing 15% of its domestic electricity needs from renewable sources. Combined, the two projects will account for nearly 18% of the 1.8 gigawatts (GW) of renewable energy Jordan plans to install by 2020.
