Masdar appoints IFC to oversee funding of Jordan’s largest solar project

ABU DHABI, Abu Dhabi’s renewable energy company Masdar selected the International Finance Corporation (IFC), a member of the World Bank Group, to oversee the funding of the largest solar power plant in Hashemite Kingdom of Jordan, a 200 megawatt (MW) photovoltaic facility being developed by the wholly owned Masdar subsidiary Baynouna Solar Energy Company (BSEC).

At the Abu Dhabi Sustainability Week today, Masdar’s Chief Executive Officer Mohamed Jameel Al Ramahi and Chief Financial Officer Niall Hannigan signed a finance mandate letter with Eric Becker, IFC’s Manager of Infrastructure for the Middle East and North Africa.

Today’s announcement follows the signing of a power purchase agreement, PPA, in October between Masdar and the National Electric Power Company, Jordan’s state electricity provider.

“We are delighted to be working with the IFC in the realisation of Jordan’s largest solar plant, further consolidating Masdar’s significant presence in the country,” said Hannigan. “Our partnership with the IFC will ensure that this landmark project will be developed according to the highest standards of financial best practices while illustrating the strength of investor confidence in renewable energy.”

Expected to break ground later this year, the 200 MW plant will be built just 10 km away from Jordan’s capital Amman. When connected to the national grid, it will supply the annual power requirements of around 110,000 homes and do away with an estimated 360,000 tonnes of carbon dioxide emissions each year.

“The Middle East and North Africa continue to face serious power shortages, and there is now even greater pressure on infrastructure services,” said Becker of IFC. “We have been working with Masdar, a key partner, since 2013, and welcome this opportunity to further support the development of renewable energy generation capacity across the region.”

The project follows the launch of the 117 MW Tafila wind farm in Jordan in December 2015, the Middle East’s largest onshore wind power development. Masdar has a 31 percent stake in Tafila, with InfraMed (50 percent) and EP Global Energy (19 percent) holding the rest.

The combined output of Tafila wind farm and the Baynouna solar project will account for nearly 18 percent of the 1.8 gigawatt (GW) of renewable energy that Jordan plans to instal by 2020.

Masdar’s clean energy division is a leading developer and operator of utility-scale, grid-tied projects, applications providing energy access to communities away from electricity grids and carbon abatement projects. Since 2006, Masdar has invested in renewable energy projects with a combined value of US$8.5 billion. The company’s share in these investments stands at US$2.7 billion.

Masdar has renewable energy projects in the UAE, Jordan, Mauritania, Egypt, Morocco, Great Britain, Serbia and Spain. The power-generating capacity of these projects, which are either fully operational or under development, stands at 2.7 GW gross.

Source: Emirates News Agency