Jordans National Electric Power Company (Nepco) has signed two power purchase agreements (PPAs) for 50MW solar photovoltaic projects in the second round of its feed-in tariff programme.
Saudi Arabias Fotowatio Solar Renewable Ventures/Abdul Latif Jameel Energy and Saudi Oger/Modern Arabia Solar Energy (Mase – local) signed the PPAs.
Four companies were selected in the second round to develop build-own operate projects.
Greeces Sunrise PV Systems, the lowest bidder at a record 4.34 JDcents (JDc) a kilowatt hour (kWh), has run into difficulties developing its project.
It is thought to have found a buyer. The strategic buyer is looking to enter the Middle Eastern market, and is willing to make a loss on the ultra low tariff, a source told MEED.
Sunrise did not respond immediately to a request for comment.
The fourth developer, Chinas Hareon Swiss Solar, is expected to move ahead with its project.
Twenty-four bids were submitted in the second round.
The successful bids were:
- Sunrise PV Systems 4.34 JDcents a kWh
- Saudi Oger (Saudi Arabia) 4.598 JDc a kWh
- Fotowatio Solar Renewable Ventures/ Abdul Latif Jameel Energy 4.895 JDc a kWh
- Hareon Swiss Holding 5.43 JDc a kWh
Saudi Oger will carry out its work near Safawi, while the other three sites are in the Mafraq development area, all in the northern governorate of Mafraq.
For the first round, 12 solar projects between 10MW and 20MW reached a financial close in mid-2015. The deals were delayed due to grid limitations and delays with land and permitting.
Washington-based development bank the International Finance Corporation (IFC) took the lead in arranging finance in the first round. Now that the scheme is well established, commercial banks are expected to play a larger role in financing the second round.