Jordan signs wind power agreements

04 April 2016

Two new projects to go ahead

Jordan’s National Electric Power Company (Nepco) has signed power purchase agreements (PPAs) with two wind developers for a total capacity of 100MW, according to local press.

Korea Southern Power Company (Kospo) signed a PPA to develop a $110m, 50MW power plant in Tafilah. Fellow South Korean firm Daelim will carry out the engineering, procurement and construction (EPC) work.

Saudi Arabia’s Abour Group, a subsidiary of Xenel Industries owned by the Alireza family, signed the other 50MW PPA for a $100m wind farm in Tafilah.

The Washington-based International Finance Corporation (IFC) and Riyadh-based Islamic Development Bank will finance the schemes, according to the Jordan Times newspaper.

Construction on the plants is due to begin in 2017 and be completed in 2019.

The local Green Watts signed a PPA in October 2015 for an 82MW project in Al-Rajef. The US’ Hecate Energy has been selected for a 45MW wind project in Irbid. 

Korea Electric Power Company (Kepco) signed a PPA in December to develop a $510m, 89MW wind farm in Fujeij. It plans to use fellow South Korean firm Doosan to carry out EPC work. Denmark’s Vestas will provide turbines.

This was originally under a 2010 tender, but has been folded into Jordan’s first round feed-in tariff project.

This brings the total to five wind schemes under development, with a capacity of more than 315MW. The firms have 12 months to reach financial close, which can be extended.

Jordan’s first round feed-in tariff project was launched in 2011. Twelve solar projects reached a financial close in mid-2015, 14 months after PPAs were signed.

PPAs were signed for four second-round solar schemes in late 2015 and early 2016, and finance is now being sought from development banks including the IFC and European Bank for Reconstruction & Development (EBRD). The firms have nine months to reach financial close.

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