Jordan signs agreements for initial renewables round

10 June 2014

12 developers will build and operate photovoltaic power plants in Jordan

Jordan’s Ministry of Energy and Mineral Resources (MEMR) signed power purchase agreement (PPA) contracts with 12 developers for solar projects as part of the first round of its direct proposal programme.

The PPAs were signed with developers for 20-year build-own-operate (BOO) contracts for photovoltaic (PV) solar projects, nine of which will be located in the Maan Development Area Project in Maan. The total investment for the solar plants will reach about $560m.

The developers and projects are:

  • Shams Maan, 50MW project in Maan Development Area (MDA)
  • First Investment Company for Clean Energy, 10MW in MDA
  • Shamsuna Power Company, 10MW in Aqaba
  • Scatec Solar Jordan, 10MW in MDA
  • Saqr Maan for Solar Energy, 20MW in MDA
  • Anwar Company for Electricity Generation, 10MW in MDA
  • Zanbaq for Electricity Generation, 10MW in MDA
  • Land of Hope Company for Power Generation, 10MW in MDA
  • Jordan Solar Wen, 20MW in Mafraq
  • Sun Edison, 20MW in MDA
  • (Warda) Rose Company for Power Generation, 10MW in MDA
  • Zahra al-Salem Power Generation Company, 10MW in MDA

MEMR began the first round of its direct proposals programme in May 2011, when it invited expressions of interest for the initial round. After receiving 64 expressions of interest, a shortlist of 34 companies and consortiums were compiled. After that, a total of 30 memorandums of understanding (MoUs) were signed calling for a total of 850MW solar and wind power projects.

From this list, 15 PV, two concentrating PV and five concentrated solar power (CSP) projects, were initially qualified. Eventually, 12 PV schemes with an aggregate capacity of 170MW were ultimately approved.

MEMR had hoped to have signed the PPAs for the first round before the end of 2013, but due to the lack of precedent the process took longer than expected, according to sources involved in the process.

In May, MEMR extended the deadline for companies to submit expressions of interest for the third round of its direct proposal renewable energy programme.

MEMR has extended the deadline from 15 May to 14 August to submit interest in the third round, which has been implemented to encourage more companies to participate, according to sources close to the programme.

MEMR recently prequalified a total of 47 expressions of interest, 24 of those conditionally, for solar schemes and six firms, two of those conditionally, for wind energy projects for the second stage of the renewable energy direct proposal programme.

Under the direct proposal programme, applicants, which can be single companies or joint ventures, submit proposals for the wind and solar projects, which will be implemented on a BOO basis. Applicants selected by the government will receive an MoU, which will allow them to proceed with feasibility studies and measurement programmes.

For the third round, MEMR has increased the capacity of solar projects to 100MW, an increase from the maximum 50MW for solar photovoltaic (PV) projects and 50-100MW for wind-power schemes in the second round.

MEMR began its direct proposal programme for renewable projects in May 2011, when it invited expressions of interest for the first round. After receiving 64 expressions of interest for the first stage, a shortlist of 34 companies and consortiums were compiled. After that, a total of 30 MoUs were signed calling for a total of 850MW solar and wind power projects.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.