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Jordan closes on EUR100mn loan

Deal with European lenders could pave the way for next round of renewables projects.

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Jordan, Renewables, News

Jordan has secured a EUR 100mn ($120mn) loan to expand its electricity grid, paving the way for the country to proceed with postponed renewable energy projects.

The deal will be signed soon with the French Development Agency and the European Investment Bank (EIB), minister of energy and mineral resources Mohammad Hamed told The Jordan Times.

Work could begin as early as the first quarter of this year to add 1,000MW to the current capacity of 4,300MW within  two year period.

"When the project is completed, we will open the door anew for implementing several renewable energy projects," said the minister. "We may give the green light to some projects ahead of the completion of the project," he added.

In August, Jordan shelved its third round of renewable energy projects after failing to secure funding from neighbouring GCC countries to expand its power grid.

Plans to tender four power plants with a total capacity of 400MW were placed on ice.

The Kingdom is currently almost completely dependent on expensive fuel imports to generate power, putting pressure on government budgets.

Through the addition of multiple solar and wind projects, the country plans to lift the share of indigenously sourced energy from around 3% to around 40% over the next five years.

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