Alcazar Energy Ltd., a Dubai-based renewable-energy developer, reached financial close on a $185-million wind farm in Jordan.
The Al Rajef wind farm will have 86 megawatts of capacity when complete, according to a statement from the European Bank for Reconstruction and Development, which is one of the lenders. It will be in the Ma’an governorate, south of the capital city of Amman.
The London-based development bank is lending $70 million. France’s Proparco and DEG, a subsidiary of German development bank KfW, are also providing loans. The project’s debt-to-equity split is 75 to 25, according to Harry Boyd-Carpenter, a senior EBRD banker
The wind farm is part of Jordan’s first renewable energy round, which has resulted in about 200 megawatts of operational solar.
“Jordan is the poster child for the region, they’ve mobilized a lot of private capital for renewables,” Boyd- Carpenter said. “It’s a beneficial circle, you have one good project and good round and that proves the market and attracts more investors.”
Green Watts Renewable Energy LLC, a special purpose vehicle, has been set up to manage the project. It is wholly owned by Alcazar Energy.
Construction is expected to begin in the next few weeks and commissioning is planned for September or October 2018. The company has signed a long-term power purchase agreement with the Jordanian National Electricity Power Co.
By Anna Hirtenstein
EBRD Press Release: http://www.ebrd.com/news/2016/ebrd-finances-wind-power-plant-in-jordan.html