US$ 70 million to Green Watts Renewable Energy for the construction of Al Rajef wind power plant
The European Bank for Reconstruction and Development (EBRD) is providing a loan of US$ 70 million to Green Watts Renewable Energy LLC*, for the construction of an 86 MW wind power plant in the Ma'an governorate of southern Jordan.
The plant is the first wind project developed under round one of Jordan's renewable energy feed-in-tariff programme and will increase the country’s installed wind capacity by around 40 per cent. The EBRD has been supporting Jordan’s renewable energy programme since 2012, including financing solar photovoltaic power plants totalling 60 MW to date.
The total project cost for Al Rajef wind farm amounts to US$ 185 million. The EBRD loan will be accompanied by parallel loans of US$ 50 million from Proparco (Société de Promotion et de Participation pour la Coopération Economique S.A.) and US$ 19.4 million from DEG-Deutsche Investitions- und Entwicklungsgesellschaft mbH (German Investment and Development Corporation).
Jordan enjoys outstanding wind and solar resources, which provide the opportunity for the country to reduce its energy costs and hydrocarbon dependence without burdening the government’s balance sheet. Jordan is leading the Middle East in mobilising private capital to deliver renewable energy. Since 2012 nine solar and one windfarm project have been built by the private sector and are generating electricity, reducing the country’s energy imports and its hydrocarbon dependence.
Nandita Parshad, EBRD Director for Power and Energy, said: “Jordan is facing a serious challenge to meet the growing demand for electricity in a sustainable and affordable manner. We are very proud to step up our commitment by financing this wind power plant and we look forward to getting even more deeply involved in Jordan’s energy sector in the near future.”
Daniel Calderon, CEO and co-founder of Alcazar Energy, said: “The successful implementation of Jordan’s renewable energy programme delivers tremendous benefits to the country’s macroeconomic, social and environmental landscape. We appreciate the support of the government of Jordan, our investors and lenders who have enabled us to play an active role in this programme. Our objective is to build a long-term sustainable portfolio of renewable energy projects in the country while bringing positive change to the communities in which we operate.”
Jordan became an EBRD country of operations in 2012 and to date the EBRD has committed €613 million through 29 projects in various sectors of the economy, including trade facilitation credit lines with local banks.
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 EBRD expects to more than triple the volume of renewable energy financed in Jordan in the near future.
*Green Watts Renewable Energy LLC is a limited liability company incorporated in Jordan and ultimately 100 per cent owned by Alcazar Energy Partners (the sponsor), a Dubai-based renewable energy company.