Fotowatio reaches financial close for 133 MW Jordan solar projects

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The financial close was reached for two large-scale solar plants in Jordan that are expected to have a combined capacity of 133.4 MW, announced Abdul Latif Jameel Energy, which is based in the UAE and Saudi Arabia and the parent company of Spanish solar project developer Fotowatio Renewable Ventures (FRV).

The company said that the two facilities, which are expected to launch operations in June 2018, will supply power at $0.069 and $0.076 per kWh respectively, adding that this is below the average cost of electricity in Jordan.

The aggregate investment value is estimated at $180 million and the electricity produced by the solar plants Mafraq I and Mafraq II will amount to 2% of the country’s overall generation capacity.

As part of the government’s program to boost renewable energy investment and reduce the country’s reliance on imported oil, Mafraq I received a financing package from the International Finance Corporation (IFC), the Dutch Development Bank (FMO), and the Europe Arab Bank in which the IFC acted as lead arranger and syndicated part of the loan to the other two entities. IFC has also arranged the financing of the Finnish development financier FinnFund and the IFC-Canada Climate Change Program.

Meanwhile, the European Bank for Reconstruction and Development (EBRD) and the Society for the Promotion and Participation for Economic Cooperation (PROPARCO) financially underpinned Mafraq II.

“Our projects around the region, including in Jordan, clearly exhibit the great potential for solar in the Middle East,” Omar Al-Madhi, CEO of Abdul Latif Jameel Energy said, pointing out the financial viability of solar power generation.

Construction in the region of Mafraq, a premium location with high solar irradiation in the country’s north, is set to begin shortly.

Back in April 2015, the Saudi conglomerate got on board of the global PV development with a major acquisition of all solar project pipeline and operation assets of Spanish developer of large-scale power plants Fotowatio Renewable Ventures (FRV) after it had pledged to support the MENAT region’s adoption of renewable energy.