Martifer announces PPA in Jordan
Martifer Solar and Adenium Energy Capital, a Dubai-based investment and development company, have been awarded a Power Purchase Agreement (PPA) for a 10 MW AC solar PV plant in Ma'an, a city located in the southern part of Jordan. The companies executed the 20-year PPA with the national utility of Jordan, NEPCO (National Electric Power Company), at a tariff rate of USD $0.169, which will provide reliable electricity with significant savings compared to the country's current fuel oil generation rates.
Martifer Solar has been selected as the lead developer of the 10 MW project, as approved by the Jordan government. In addition, the company will provide engineering, procurement and construction (EPC) services for these first 10 MW. Following the connection of the plant, Martifer Solar will be responsible for the related operations and maintenance (O&M) service.
The project is being developed with Adenium Energy Capital, an investment company specializing in the financing and development of clean energy with a strong track record in finance and asset-based investments. Adenium will finance this project with a total value of around USD $26 million. This investment represents Adenium's third solar infrastructure investment vehicle over the last two years, adding to its current 65 MW portfolio in Japan and 60 MW in Italy.
"The successful award of this PPA for a new 10 MW plant in Jordan confirms our abilities as a fully-integrated player capable of adapting our 360° business model to new and emerging markets. The fact that the Jordan government has approved Martifer Solar as the lead Developer for this project is the best testimonial to our proven strength and track record in project development from other successful markets, such as the United Kingdom," stated Henrique Rodrigues, CEO of Martifer Solar. "We look forward to additional achievements throughout 2014 as we continue to stay one step ahead as a leader in the global PV market."
The 10 MW solar PV plant will be built in an area of approximately 260,000 m2, using modules installed on single-axis trackers and is expected to produce an estimated 25 GWh/year. With this production capacity, the plant will offset 14,138 tons of carbon dioxide on an annual basis, which is sufficient energy to power more than 27,000 inhabitants in Jordan per year. In addition to the significant environmental benefits the project will provide to Jordan and the Ma'an area, it will also spur economic growth by providing more than 100 jobs to the local community.
"This project is a groundbreaking development for solar power in Jordan and the region. Our solar project is going to generate power from a clean source of energy, increasing Jordan's energy independence. Moreover, this will present great economic savings to the Jordanian government and we are proud to be part of that solution with Martifer Solar. As for Adenium, this represents an important achievement in our region, making our investment one of the few private renewable energy investments in the Middle East," said Wassef Sawaf, CEO of Adenium.
Jeremy Crane, Adenium's COO, also commented, "The execution of the PPA marks an exciting milestone for Adenium after three years of work. Over the coming months our team will be structuring financing, finalizing construction contracts, and ultimately contributing to building a new economic sector for Jordan."
"We are pleased to be working together with Adenium Energy Capital and to have been awarded one of the coveted 12 agreements signed under the first round of projects from the Ministry of Energy and Mineral Resources in Jordan. This accomplishment attests to Martifer Solar's step forward as a leading developer on a global scale and contributes significantly to Jordan's future economic development. We will continue to pursue new opportunities within this emerging market and the greater Middle East region," said Eduardo Pereira, Head of Middle East Business Development for Martifer Solar.
According to a statement given to the Jordan Times by Energy Minister, Dr. Mohammad Hamed, the projects awarded under this first round of the National Renewable Energy Plan will significantly help to cut the country's rising energy bill, which is one of the main challenges being addressed at this time.
The National Renewable Energy Plan calls for up to 600 MW of solar projects to be connected to the grid in Jordan by 2020. In order to obtain this goal, the government of Jordan has established a renewable energy target in order to generate 10% of the country's electricity from renewable sources by 2020.
