Under the PPA, the two utility companies will jointly finance, construct and operate a 61.3 megawatt-peak solar plant in Risha province.
The solar plant is expected to be completed by 2019 to provide NEPCO with electricity at a cost of 0.0042 Jordan dinars ($0.06) per KWh.
In a press statement, ACWA Power claims the $0.006 per KWh electricity price is claimed to be the lowest solar energy tariff in Jordan. The project will help Jordan in meeting its growing energy demand, which is reported to be rising by 7% per annum.
[quote] Abdel Fattah Al-Daradkeh, managing director of NEPCO, said: “This landmark project in Risha is a significant step forward in achieving Jordan’s renewable energy targets and providing Jordan with stable and economical electricity supply.”
The solar plant is expected to power 12,000 households and reduce up to 79,000 metric tonnes of carbon emissions once it is completed.
Thamer Al-Sharhan, chairman of the Central Electricity Generating Company (CEGCO), said: “Access to energy is a bedrock of sustainable economic development. We are proud to partner with Jordan on this journey.”
CEGCO will partner with ACWA Power and NEPCO in developing the solar plant.
Energy and water efficiency funding
In the last quarter of 2016, the government of Jordan secured $250 million soft loan from the World Bank to improve its water and energy sectors.
The government said it will use the loan to improve the country’s water and energy efficiency regulation and fund projects to increase management of water and energy resources.
The loan is expected to help the Arabic nation achieve a reliable energy grid network through increased adoption of renewable energy sources.
Imad Fakhoury, Minister of Planning and International Cooperation said the loan will help improve revenue collection within the energy and water industry and ensure utility firms become self-reliant by 2025. [Utility co-op signs 10-year PPA with RE firm].
The money will sponsor drafting of policies and programmes to ensure the country’s water sector reduces its water bills. It is predicted that 16% of Jordan’s total energy consumption is used by the water industry.
The soft loan will be paid back to the World Bank within a period of 35 years at an interest rate of 1.25%.
Image credit: EV Wind.