Scatec signs 20 year PPA in Jordan
Scatec Solar has signed a 20 year power purchase agreement with the Jordanian power company Nepco for a 10 MW solar PV plant to be built close to the city of Ma'an in Southern Jordan. Scatec Solar's first solar project in the region was selected under the first round of Jordan's renewable energy program aimed at reducing the country's dependence on imported gas supplies and expensive heavy fuel generation. The plant will provide reduced electricity cost, help reduce the kingdom's overall CO2 emissions, increase energy supply independence and stimulate employment and economic activity in the community
The PV plant will be located 200 km south of Amman, close to the city of Ma'an on land 1350 meters above sea level, featuring some of the best solar irradiation conditions in the world. The plant will be fitted with crystalline PV modules on a single axis tracker system. The electricity produced will be fed into the national grid under the 20 year power purchase agreement (PPA) signed with National Electric Power Company (NEPCO). The PPA will provide renewable electricity well below the cost of the energy currently generated from the country's heavy fuel oil generation capacity. The plan is to have the plant operational by mid- 2015.
- We are very happy to be able to realize our first utility scale PV project in Jordan, Raymond Carlsen, CEO of Scatec Solar said. "“ At the end of last year, we grid connected the first utility scale solar park in Southern Africa and the 75 MW Kalkbult solar park is currently the largest in Africa. Our objective has been to bring the experience gained in South Africa to other regions in the world with favorable solar conditions. As Jordan has superb conditions for solar energy and strong ambitions to reduce its dependency on fossil fuels, we see this as an excellent fit. Along with our business partners we look forward to further strengthen our cooperation with Jordanian stakeholders and substantially increase our solar investments in the country, Mr. Carlsen said.
The investment needed to realize and grid-connect the 10 MW solar plant is estimated at USD 28 million, and will be financed through a mix of equity and bank loans.
Together with its local partner, KAN Renewables, Scatec Solar has a number of additional projects in development for the next upcoming phases of the Jordanian renewable energy program.
