ACWA Power signs major deal for renewable energy project

ACWA Power has signed a purchase agreement with Jordan’s National Electric Power Company (NEPCO).
The agreement covers the development, financing, construction, ownership and operation of a new 61.3MWp photovoltaic project in Risha, a province in eastern Jordan.
Under the terms of the agreement, ACWA Power will sell electricity to NEPCO for a record-low tariff of 0.042 Jordanian dinars ($0.06) per kWh. It is reportedly the lowest tariff for solar energy ever presented for a Jordan-based project.
This is 3.3 percent 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 percent of the total installed capacity of electricity in Jordan. The move also reinforces ACWA Power’s position as the largest independent power plant (IPP) operator in Jordan.
The signing ceremony took place during King Salman’s official visit to Jordan recently. The governments of Saudi Arabia and Jordan also signed a number of agreements, memoranda of understanding (MoUs) and joint investment deals during the visit.
“This landmark project in Risha is a significant step forward in achieving Jordan’s renewable energy targets and providing Jordan with stable and economical electricity supply,” said Abdel Fattah Al-Daradkeh, managing director of NEPCO. “Once completed in 2019, the plant will save 79.000 metric tons of CO2, demonstrating Jordan’s commitment to renewable energy,” he added.
ACWA Power Chairman Mohammad Abunayyan said: “Jordan has long recognized that renewable energy can offer safe and reliable power to the people.”
He said: “Together with our consortium, ACWA Power has facilitated Jordan’s latest investment by deploying our expertise to the Risha facility. The project aims to deliver solar energy at the lowest possible cost to 12,000 households.”
Thamer Al-Sharhan, chairman of the Central Electricity Generating Company (CEGCO), said: “Access to energy is a bedrock of sustainable economic development. We are proud to partner with Jordan on this journey.”
The new photovoltaic facility is part of Jordan's efforts to meet its crucial energy needs.
Demand for electricity in Jordan is climbing at 7 percent per year.
ACWA Power will develop the new clean energy plant aside the existing CEGCO asset of the Risha 150 MW Gas Turbine Plant utilizing synergies from the existing plant to enhance efficiencies.

Source: Arab News