ACWA Power signs Risha Jordan PV deal with record-low tariff

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ACWA Power signs Risha Jordan PV deal with record-low tariff

ACWA Power has agreed with the Government of Jordan to develop, finance, construct, own and operate a new 61.3 MWp photovoltaic project in Risha, a province in Eastern Jordan.

ACWA Power submitted a record-low tariff of JOD0.042 (US$0.059) per kWh, the lowest tariff for solar energy ever presented for a Jordan-based project, 3.3% lower than the previous lowest tariff provided to Jordan with the Mafraq PV project, also developed by ACWA Power under the Round II of Proposals for Renewable Energy in Jordan.

Dr. Ibrahim Saif, minister of Energy & Mineral Resources for the Hashemite Kingdom of Jordan and Mohammad Abunayyan, Chairman of ACWA Power, attended the signing ceremony which sealed a commitment to develop the Risha project, on the sidelines of the World Future Energy Summit, a global showcase devoted to questions of sustainable energy, energy efficiency and clean technology. When it reaches completion targeted for Q1 2019, the plant will save c. 79.000 tons of CO2 and will power 12,000 households. 

The new photovoltaic facility is part of the kingdom’s determined effort to meet those needs head-on. Demand for electricity in Jordan is climbing at seven per cent per year, due to the country’s population booms and mounting industrial needs. Roughly 1,000 MW of solar and wind projects are underway, with a goal of raising renewables generation capacity to 20% of the capacity of Jordan and reach 15% of the energy mix by 2020.

Ahead of the ceremony, Dr. Ibrahim Saif said:

“Today the kingdom of Jordan takes another step toward sustainable and enduring energy security. Under the leadership of His Majesty King Abdullah II, the country has set ambitious renewables targets that not only reflect our needs at present but also safeguard us for the future.”

Dr. Saif added:

“Energy projects are long-term by nature, and in selecting ACWA Power, we have partnered with a business that is invested in Jordan’s energy infrastructure. With Al Risha, ACWA Power is coming on board as an investor, as well as a developer, and that commitment reflects their continued confidence in Jordan’s political stability and economic viability.”

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.

Commenting on the deal, ACWA Power Chairman Mr. Mohammad Abunayyan said: 

“The kingdom of Jordan has long recognized that renewable energy can offer safe, reliable power to the public. Together with our consortium, ACWA Power has facilitated the kingdom’s latest investment by applying our cost leadership and renewables expertise to the Risha facility. Once complete, the project will deliver solar energy at the lowest possible cost to 12,000 households.”

Mr. Thamer Al Sharhan, Chairman of CEGCO, added:

“Access to energy is a bedrock of sustainable economic development, and we are proud to partner with Jordan on its journey to, not only 1,000 MW of renewable energy, but to the kind of risk reductions, job creation, and improved trade balances that can accompany greater energy deployment.”

ACWA Power currently operates in 11 countries across the Middle East and North Africa, Turkey, Southern Africa and South East Asia regions. Once operational, the Risha facility will be the eighth power plant secured and developed by ACWA Power in the Kingdom of Jordan.

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