Four Companies to be Selected in Second Renewables Round

Venture Four Companies

Post originally published by Venture Magazine.

As part of Jordan’s second round of national renewable energy IPPs, Arabia Group said it has been shortlisted to construct a 50 MWp plant.

The company said it’s one of four solar developers that will be selected to provide a combined capacity of 200 MWp in power plants located in Azraq, Mafraq, and Safawi. They will sell electricity at record low tariffs; $0.0613, $0.0649, $0.0691, and $0.0767 per kWh, respectively. The cheapest international prices for electricity generated from solar energy range from $0.059 to $0.11 per kWh.

“This second round will prove to be extremely beneficial to the country in many ways and has already set a new balance between prices and costs,” said Arabia Group’s Project Development Director Tareq Khalifeh, whose company’s record-breaking bid was made in partnership with construction giant Saudi Oger. “The government set a ceiling tariff of $0.169 per kWh in round one to incentivize the sector. The prices in round two set instead a new benchmark for tariffs in the market today. It is clear now that if you are above these prices, there’s a very low chance of being involved in this sector.”

Arabia Group, the only developer successfully involved in both rounds, is also developing a project as part of Jordan’s first 180 MW renewable energy IPP. The company is set to begin work soon on a 10 MW solar energy plant in southern Jordan.

As part of a drive to diversify its energy basket, Jordan aims to generate 15 percent of its energy needs from renewables by 2020. Round one plants will make up about 4,5 percent of Jordan’s energy requirements, while renewable power in round two will account for some 5 percent.