Two Photovoltaic Power Station Photovoltaic Financing FRV Complete Jordan
FRV has announced the financial close of two of the four projects awarded in the second round of Jordan's solar independent power producer (IPP) tender.
Both projects represent a combined investment of US $180 million and will start construction in the region of Mafraq, a premium location with high solar irradiation in the north of the country.
Once construction is completed, the solar plants – called Mafraq I and Mafraq II – will generate 133.4MW DC. This represents approximately 2% of Jordan's total generation capacity, sufficient energy to supply more than 80,000 Jordanian households per year. Both projects will avoid the emission of over 160,000 tons of CO2 per year, which is equivalent to removing approximately 34,000 cars from the country's highways.
It is estimated that the projects generate 500 jobs during their construction phase and they are expected to begin operations in June 2018. Mafraq I and Mafraq II will supply power at 6.9 and 7.6 US $ cents per kWh respectively, prices below the average cost of electricity in Jordan.
Mafraq I received a financing package from the International Finance Corporation (IFC), the Dutch Development Bank (FMO) and the Europe Arab Bank. The IFC acted as lead arranger and has syndicated part of the loan to the other two entities. Likewise, it has also promoted the financing of FinnFund and the IFC-Canada Climate Change Program.
Mafraq II has received financial support from the European Bank for Reconstruction and Development (EBRD) and the Society for the Promotion and Participation for Economic Cooperation (PROPARCO).
Rafael Benjumea, CEO of FRV, has declared that "the projects support FRV's commitment in Jordan, contributing to the generation of clean and affordable energy that fosters the country's sustainable growth".