FRV secures financing for third Jordan solar project

September 18, 2017

Fotowatio Renewable Ventures (FRV), a leading global utility-scale solar developer, has announced it has reached financial close for a third project in Jordan, strengthening its presence in the country and helping the government deliver its ambitious renewable energy plan.

FRV has closed financing with the European Bank for Reconstruction and Development (EBRD) and the Netherlands Development Finance Company (FMO), through a US$ 65 million loan divided equally between both entities for the development of the Al-Safawi solar plant (51 MW).

The loan will be provided to Al-Safawi for Green Energy PSC, a Jordanian company 70 per cent owned by FRV and 30 per cent owned by Arabia Trading & Consulting Company Ltd (ATC).

This is FRV’s third project in the country following Mafraq I and II, bringing the total number of homes to be powered with clean energy to approximately 120,000. It also means FRV will be supplying 435 million kilowatt hours of electricity per year in total across the country.

The new 51 MW plant will be located in Safawi, a region north of Jordan and an area with high levels of solar potential. The development of the project includes the design, financing, construction and management of the operation and maintenance (O&M) services of the photovoltaic plant, whose size will reach 170 hectares.

With TSK as the EPC contractor, the project will incorporate single-axis tracking technology that will optimize its performance, with more than 200,000 monocrystalline photovoltaic panels that will generate enough electricity to supply more than 40,000 Jordanian homes. The project is expected to generate 240 jobs during its construction and 14 jobs once the operation is started.

Rafael Benjumea, CEO of FRV highlighted the social impact of the project: “Al Safawi’s project shows once again the commitment of the Jordanian government to implement its energy strategy and meet established renewable targets. With this being our latest project in Jordan, FRV is contributing to Jordan’s sustainable development with the generation of clean and affordable energy in the country.”

Harry Boyd-Carpenter, EBRD Director for Power and Energy, said: “This project is the third financed by EBRD under Jordan’s second round of its solar energy program, bringing the total installed capacity of power projects supported by EBRD in Jordan to more than 1,000 MW AC. We are pleased to continue our successful cooperation with FMO and FRV, and delighted to support FRV and ATC in this fruitful collaboration.”

Mohanned Khalifeh, ATC Group CEO, said: “The Al-Safawi project further cements ATC’s commitment towards supporting Jordan’s renewable energy ambitions. The project, which was originated by ATC, is our second solar development in Jordan. As the only local developer to be successfully involved in this second round of solar programme, we endeavour to amplify our commitment through the capacity building of local Jordanian talent across all project phases.”

 


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José Benjumea

Founder, FRV

Everything has to change to stay the same. Energy has to be accessible, clean and sustainable, but if it is not affordable, the change will never come.

Gianfranco Carassale

Lead Investment Officer, Inter-American Investment Corporation (IIC)

The pioneer spirit is something that has always characterized Rafael and José’s team, from their decision to enter the solar energy business to their expansion to new markets with an aggressive strategy able to capture them.

Gianfranco Carassale

Lead Investment Officer, Inter-American Investment Corporation (IIC)

Despite their size, they have been competing closely in bids with firms, which had different structures and abilities. This certainly shows their ability to be a strong market competitor. FRV has been a pioneer in market segments where no one had been before, and that has a lot of value.