Shams Maan solar project secures financing

22 January 2015

Project is largest in Jordan’s renewables programme

The 52.5MW Shams Maan photovoltaic (PV) solar power plant in Jordan has secured $129m in project financing to fund its construction.

The plant will be the largest scheme of its kind to date in the country.

Japanese banks Mizuho and Japan Bank for International Cooperation (Jbic) along with the UK’s Standard Chartered provided the financing for the project.

The commercial banks’ portion, worth $52m, is insured by Japan’s Nippon Export and Investment Insurance (Nexi). Mizuho’s portion of the debt was $39m.

Financing agreements were signed with the local project company, Shams Maan Power Generation, on 18 January, according to a statement from Mizuho.

The company is owned by Japan-based Mitsubishi Corporation’s 100 per cent-owned subsidiary Diamond Generating Europe (DGE) (35 per cent), Qatar-based Nebras Power (35 per cent) – a subsidiary of Qatar Electricity & Water Company, and the local Kawar (30 per cent).  

The project is being developed in the Maan Development Area in the southern part of Jordan. The project company has signed a long-term power purchase agreement (PPA) with National Electric Power Company (Nepco) for a 20-year period.

US firm First Solar is providing the engineering, procurement and construction (EPC) services for the power plant. The company was originally part of the developer consortium, but it divested its stake to DGE and Nebras Power.

The project is one of 12 that qualify for subsidies from the state as part of Jordan’s renewable energy programme. The government has opened a second round for its renewables programme, with bids due in in the coming months.

Shams Maan is expected to produce 160 million kilowatt hours (kWh) of electricity a year, with capacity to power more than 35,000 homes.

The scheme is expected to help meet the country’s increasing demand for power, which is growing at an average of 7 per cent a year.

Follow Rebecca Spong on Twitter: @Rebecca_MEED

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