The company agreed a $27m A loan with the European Bank for Reconstruction and Development (EBRD) and a B loan of the same amount with the Netherlands Development Finance Company.
The solar plant will be situated in the King Hussein Bin Talal development area in the Mafraq region in North Jordan. It will be part of a 150MWac solar complex.
ACWA Power anticipates to achieve financial close on the project in March 2017. The project has a 20-year power purchase agreement, under which sale the generated electricity will be sold at a record low tariff of JOD 0.043 ($0.061 per kWh. A transmission connection agreement has also been signed.
The company intends to transfer the plant to a new company called ACWA Power RenewCo, which was created to hold its existing renewable energy portfolio of over 1GW.
EBRD power and energy director Nandita Parshad said: “We are very pleased to be partnering with our existing client ACWA Power to deliver this landmark transaction.
“It will provide electricity at a highly competitive price and supports the government’s goals of meeting rapid demand growth while improving the sustainability and affordability of electricity in Jordan.”
ACWA Power chief investment officer Rajit Nanda said: “This is an important project for ACWA Power in Jordan.
“It adds up to our presence as one of Jordan’s largest power generators (through CEGCO, and the ACWA Power Zarqa – which is nearing execution), and is yet another demonstration of our commitment to the country.
“The partnership with EBRD for funding this project has been a critical component in helping us support NEPCO by providing record low tariffs for Renewable energy in Jordan.”
Image: EBRD support ACWA Power to setup 60MW solar plant in Jordan. Photo: Courtesy of The European Bank for Reconstruction and Development.
