Jordan's round 2 solar tariffs fall by 50%
Greek company places top bid of $6.13 cents/kWh, within 10% of Dubai.
Jordan received 24 bids in the second round of its solar energy procurement programme with the lowest bids not far off the record levels seen in Dubai earlier this year.
The average of the top four tariffs in Round 2 is over 50% lower than the Round 1 tariff, reflecting a dramatic improvement in the cost of solar in Jordan.
“The winning tariff is within 10% of the record-low tariff in the DEWA 200MW IPP project, suggesting that a tariff of $6-8 cents is the new benchmark for utility-scale solar projects in the stable markets within the Middle East,” said Vahid Fotuhi, president of the Middle East Solar Industry Association (MESIA).
“The results in Jordan will send a strong signal to other solar markets, notably Saudi Arabia, who are sitting on the sidelines of the region's solar market. Riyadh can now see that solar is extremely competitive compared to conventional sources of power generation.
“If they decide to follow in Amman's footsteps, we will see the Middle East solar market take off like never before.”
GI Karnomourakis SunRise of Greece submitted the lowest bid of JOD 4.3441 cents ($6.13 cents) per kWh, within 10% of the bid that secured ACWA Power the contract to develop Dubai’s 200MW first expansion phase.
On this occasion ACWA’s bid of JOD 6.5831 cents ($9.29 cents) was only the 18th lowest of the 24 bids lodged.
In second and third place were two of ACWA Power’s Saudi Arabian compatriots. Saudi Oger’s bid came in at JOD 4.59784 cents ($6.49 cents) while Abdul Latif Jameel and its newly acquired partner Fotowatio of Spain bid JOD 4.8949 cents ($6.91 cents).
In fourth place but somewhat behind the first three was Hareon Swiss Holding with a bid of JOD 5.43 cents ($7.67 cents).
The top four will be awarded a 50MW solar PV project, subject to a detailed commercial and technical evaluation of their bid.