The European Bank for Reconstruction and Development (EBRD) has announced that it will provide a $265m loan to National Electric Power Company (NEPCO) of Jordan.
EBRD has successfully deployed first rounds of renewable energy in Jordan and extending its support to the country to boost the role of renewables in the energy mix.
The loan is expected strengthen NEPCO’s balance sheet by refinancing of existing short-term debt and expected to fund important investments to increase grid capacity and manage renewable power.
Alongside with the loan the Jordan government, NEPCO and the Bank have agreed on a set of reforms that are aimed at strengthening NEPCO’s governance and operations. It is expected to be supported by grant-funded technical cooperation assignments.
The project is capable of improving the integration of renewables into the national power network and advance corporate reforms.
Integration of green energy into the national electricity network can be improved by construction of new substations, automated grid management systems and transmission infrastructure, said the Bank.
The solar energy generated in the north and south of the country will be fed into the power grid and directed towards high demand areas like the capital city Amman.
EBRD stated: “NEPCO has been at the heart of Jordan’s remarkable renewable revolution, which leads the way in using private capital and skills to unlock the country’s great wind and solar resources.”
The EBRD has offered more than €1bn for 40 projects since the start of its operations in Jordan in 2012. The financing included more than $466m of loans to 12 power and energy sector projects within the country.
The EBRD has also invested more than €12bn in 306 power and energy sector projects in the economies where it invests.