ACWA Power Risha achieves Financial Close for 61.3 MWp Solar PV IPP in Jordan

ACWA Power Risha achieves Financial Close for 61.3 MWp Solar PV IPP in Jordan
  • Financing agreements for Risha PV IPP were signed with EBRD, DEG and Arab Bank last month
  • Project will deliver Solar Energy at a record low tariff of 0.042 JD/kWh (equal to c. 5.92 USD cents/kWh), over a 20 year Power Purchase Agreement with NEPCO
  • Demonstrates ACWA Power’s commitment to Jordan and large scale renewable investment in the country
  • Follows closely on the heels of 50 MW Mafraq PV IPP project which was closed earlier this year

ACWA Power is delighted to announce 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.