ACWA Power signs PPA for PV project in Jordan
ACWA Power has signed a power purchase agreement with NEPCO, covering the development, financing, construction, ownership, and operation of a new 61.3MW photovoltaic project in Jordan
ACWA Power has announced signing a power purchase agreement with Jordan’s National Electric Power Company (NEPCO).
The agreement covers the development, financing, construction, ownership, and operation of a new 61.3MW photovoltaic project in Risha, a province in Jordan.
Under the terms of the agreement, ACWA Power will sell electricity to NEPCO for a record-low tariff of $0.06 (JOD0.042) per kWh. It is reportedly the lowest tariff for solar energy ever presented for a Jordan-based project.
According to the company, it is 3.3% lower than the previous lowest tariff provided to Jordan for the Mafraq PV project, also developed by ACWA Power under the second round of proposals for renewable energy in the country.
With the Risha PV, ACWA Power’s portfolio in Jordan now expands to eight assets with an aggregate capacity of 1,665MW, representing almost 40% of the total installed capacity of electricity in Jordan.
It also reinforces ACWA Power’s position as the largest IPP (independent power producer) operator in Jordan.
The signing ceremony was part of the official visit of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud to Jordan, during which the Saudi and Jordanian governments signed a number of agreements, Memoranda of Understanding (MoUs), and joint investment deals.
HE Eng Abdel Fattah Al-Daradkeh, managing director of NEPCO, said: “This landmark project in Risha is a significant step forward in achieving Jordan’s renewable energy targets, and providing a stable and economical electricity supply in Jordan.”
Commenting on the deal, Mohammad Abunayyan, chairman of ACWA Power, said: “The Hashemite Kingdom of Jordan has long recognized that renewable energy can offer safe, reliable power to the public.
Together with our consortium, ACWA Power has facilitated the kingdom’s latest investment by applying our cost leadership and renewables expertise to the Risha facility.
“Once complete, the project will deliver solar energy at the lowest possible cost to 12,000 households.”
The new photovoltaic facility is part of the kingdom’s determined effort to meet those needs head-on. Demand for electricity in Jordan is climbing at 7% per year, due to the country’s population boom and increasing industrial needs.