AES submits solar proposal for Jordan

27 October 2010

Photovoltaic solar project would have a capacity of 20-40MW

The US’ AES has submitted an unsolicited application for a photovoltaic (PV) solar power project to Jordan’s Energy & Mineral Resources Ministry.

The developer has identified a site around a kilometre south of Amman that would be suitable for a 20-40MW solar facility.

Should the ministry approve the proposal, the project will be undertaken by AES Solar and 50:50 joint venture partner US-based Riverstone Holdings.

According to Steve Walsh, president of AES Middle East, the company would be capable of installing a solar project of this size within eight months.

The facility would be project financed with a combination of debt and equity. The sponsors also intend to leverage relationships with multilateral organisations to source financing.

A crucial issue is likely to be the tariff negotiated for the project. “We would need a tariff that works for us and works for them” says Walsh. “We think that we can provide a renewable resource at a common sense price that will help them diversify their energy portfolio.”

Jordan enacted a renewable energy law earlier this year that allows developers to submit unsolicited proposals. The government has six months to respond to a proposal.

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