KFW DEG finances Jordan’s largest solar project

KFW DEG finances Jordan’s largest solar project

Jordan is highly dependent on fuel imports. The country now wants to increase its energy independence by boosting renewable energy investments.

Jordan’s largest solar project is being constructed around 30 km southeast of its capital Amman. It is expected to supply around 94,000 households with solar energy. IFC, a member of the World Bank Group, has arranged the financing package of up to USD 188m for the 248 MW plant. DEG participated in the financing by providing a long-term loan amounting to USD 20m.

The “Baynouna” solar project is 70 percent owned by Abu Dhabi Future Energy Company (Masdar). The Finnish Taaleri Group, an experienced renewables operator, acquired a 30 percent interest in the solar project.

Jordan benefits from a high level of solar irradiation, which also has an impact on the price of electricity. Solar power is significantly cheaper than the energy supply from fossil fuel sources.

Expected to be operational in 2020, the solar project will save over 360,000 tonnes of CO2 a year by reducing the need for thermal power generation and meeting the increased energy demand. The infrastructure expansion associated with the solar project will also boost economic development in the region.

Original source: KFW
Published on 13 February 2018