Islamic Corporation for the Development of the Private Sector (ICD) and Shobak Wind Energy have signed facility agreements for a $26 million financing to part fund the construction of a 45 MW wind farm in Jordan near the Shobak town municipality, 160 km south of capital Amman.
The balance of the Shariah-compliant senior financing is being provided by the European Bank for Reconstruction and Development (EBRD) and Europe Arab Bank (EAB), reported The Saudi Gazette.
The project company is majority-owned by Alcazar Energy Partners, a UAE-based independent developer active in the Middle East, Africa and Turkey.
Alcazar Energy is developing the project in partnership with Hecate Energy, a US-based developer.
The project, which will deploy 13 wind turbines supplied by Vestas Wind Systems, will be constructed over a 2-year period and have a total cost of approximately $104 million.
Once the project is operational, the generated power will be sold to the Jordanian National Electricity Power Company (Nepco) under a long-term power purchase agreement.
The project will support Jordan in increasing its electricity generation capacity from clean, indigenous and renewable sources and reducing reliance on costly hydrocarbon imports.
It will help the country abate more than 100,000 tons of CO2-equivalent per annum, supporting Jordan’s emission reduction targets under the Paris Climate Agreement, as well as promoting sustainable energy development and private sector participation in the country’s energy landscape.