Saudi Arabia headquartered ACWA Power has announced that the 61.3 MWp Risha PV IPP project has achieved financial close on 20th December 2017.
This follows the execution of Financing Agreements late last month. The financing comprises senior loans of US$ 22 million from the European Bank for Reconstruction and Development (EBRD) and US$ 16 million each from Deutsche Investitions- Und Entwicklungsgesellschaft Mbh (DEG) and Arab Bank to Risha for Solar Power Projects PSC.
The Power Purchase Agreement (“PPA”) and the Transmission Connection Agreement (“TCA”) for the project were signed with NEPCO while the Government Guarantee Agreement (“GGA”) was signed with the Ministry of Finance, simultaneously in March 2017.
The project, developed by ACWA Power and procured by NEPCO on a bilateral basis, will deliver the lowest tariff (0.042 JD/kWh equal to ca. 5.92 USD cents/kWh) across all renewable energy projects in Jordan including the Round I and II of the Photovoltaic Procurement program of the Ministry of Energy and Mineral Resources.
The plant is to be connected at the site with a modified substation, which is already connecting the existing CEGCO plant, resulting in a tariff that is over 3% lower than the previous lowest tariff provided to Jordan with the Mafraq PV IPP project, which was also developed by ACWA Power.
The 61.3 MWp plant located in Risha Area, Mafraq Governorate (300km north-east of Amman), has the capacity to power c.12,000 households every year. This project will also result in c.1.5 million Tons of CO2 saved over 20 years, equivalent to 79,000 tons of CO2 per year.
Thamer Al Sharhan, Managing Director of ACWA Power and Chairman of CEGCO, said: “This is an important milestone for the project. Having closed the financing, we are now looking forward to successfully building the plant and commencing in the commercial operations by Q3-2019. Our goal is to reliably deliver clean energy at the lowest ever tariffs for Jordan.”
Rajit Nanda, Chief Investment Officer of ACWA Power said: “The Risha PV IPP project adds up to our presence as one of Jordan’s largest power generators (through CEGCO, ACWA Power Zarqa and Mafraq PV IPP), and is yet another demonstration of our commitment to the country. We are also proud to be associated with EBRD, and Arab Bank in Jordan, building up on continuing relationships, as they support the development of the renewable energy in the MENA region; DEG and ACWA Power have come together for the first time but we are confident that this relationship will go from strength to strength. The partnership with EBRD, DEG and Arab Bank for funding this project has been a critical component in helping us support NEPCO by providing record low tariffs for Renewable energy in Jordan.”