Masdar-led JV secures funds for Jordan’s largest solar power project

Masdar-led JV secures funds for Jordan’s largest solar power project
Amman, Jordan.
Published: 18 January 2018 - 3:10 a.m.
By: Jumana Abdel-Razzaq

Abu Dhabi Future Energy Company, Masdar, announced that the financing for Jordan’s largest solar power plant has been completed.

The 200 megawatt-capacity Baynouna Solar Energy Project, which will be built 10 kilometres outside of the capital Amman, will be developed through Baynouna Solar Energy Company (BSEC) a joint-venture between Masdar and Taaleri, and the International Finance Corporation (IFC).

The solar energy project will supply approximately 110,000 homes while displacing an estimated 360,000 tonnes of carbon dioxide annually, the equivalent of taking nearly 80,000 cars off the roads.

Baynouna Solar Energy Project is due to be completed in the second quarter of 2020.

The agreement was signed by Niall Hannigan, chairman of Baynouna Solar Energy PSC, Erik Becker, manager of Infrastructure, MENA, IFC, Abdul-Fatah Al-Daradkeh, general manager, National Electric Power Company (NEPCO) and Turan Caglayan, senior director, Corporate & Funds for Asia and Europe, DEG.

BSEC is the Masdar-led special project vehicle, developing Jordan’s largest solar PV plant on behalf of the state utility, National Electric Power Company. The Finnish investment company, Taaleri Group, announced last week that it has taken a 30% stake in BSEC.

To finance the project, IFC invested part of its own capital and secured additional funds from Japan International Cooperation Agency, the Dutch Development Bank, FMO, Europe Arab Bank, OPEC Fund for International Development, OFID, and German Development Bank, DEG.

Dr Saleh Kharabsheh, Jordan’s Minister of Energy, said: "We are glad to have Masdar developing its second renewable energy project in Jordan, our largest solar energy farm.

“The Baynouna project is helping to deliver on His Majesty King Abdullah II’s vision for a diversified energy mix and progressing the national agenda for energy security and sustainability, and is a result of the co-operation agreements signed between the Jordanian government and the Abu Dhabi government represented by Masdar.”

Baynouna is Masdar’s second major renewable energy project in Jordan after the 11-MW Tafila wind farm was inaugurated in December 2015.

Baynouna and Tafila combined will contribute around 18% of the 1.8 gigawatts of renewable-energy capacity that Jordan plans to install by 2020. The kingdom hopes to source 15% of its electricity from renewables by then.

In December 2017, the EPC contract for the wind farm was awarded to a consortium led by UAE-based Enviromena Power Systems and Saudi-based Arabian BEMCO Contracting Co.

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