The local Green Watts has signed a power purchase agreement (PPA) with Jordan’s National Electric Power Company (Nepco) for a $174m 82MW wind farm in Al-Rajef.

The deal was inked at the World Economic Forum (WEF) held on 21-23 May in Jordan.

The PPA has a 20-year term. Green Watts is the first wind developer to sign a PPA under Jordan’s feed-in tariff scheme, after direct proposals were submitted in 2011.

The developer is in negotiations with multilateral financial institutions and development banks, and hopes to reach a financial close in six months.

Spanish firm Gamesa will provide 41 2MW turbines under a $160m contract.

Feed-in tariff wind projects in Jordan were delayed by the government’s decision to lower the tariff from 85 Jordanian fils (12 cents) a kilowatt hour (kWh) to 80 fils. Costs then had to be recalculated and contracts renegotiated.

“We are working with export credit agencies and multilateral financiers to overcome the negative impact of the change,” says Yazan Abu Hantash, general manager of Green Watts.

The project will cover a 6-square-kilometre area of land leased from multiple private owners since 2011. Having land in place will avoid some of the issues solar developers faced in securing finance deals.

“The huge announcements at the WEF in Jordan are setting a new dimension for renewable energy, especially with the slow pace in other countries such as Saudi Arabia,” says Abu Hantash. “Jordan is the market where private investors should be involved in financing.”

Many of the solar schemes from the first round of the feed-in tariff scheme have now reached financial close.

Bids for four 50MW solar projects in the second round of the feed-in tariff scheme were opened earlier in May.

Green Watts is also looking at Egypt’s wind feed-in tariff scheme with interest.