Acwa plans low-cost solar project in Jordan

Acwa will provide power at a cost of 5.88 cents per kilowatt-hour.

Saudi Arabia’s Acwa Power will build a 61.3 megawatt (MW) solar photovoltaic (PV) project in Jordan, producing electricity for 5.88 US cents per kilowatt-hour – the lowest solar tariff ever for a project in the country.

The Risha solar project in the country’s east will be built alongside an existing 150MW gas plant operated by the Central Electricity Generation Company, a utility in which Acwa is the majority shareholder.

The previous lowest price was 6.13 cents per kWh for the Mafraq PV project submitted by the Greek firm Sunrise in Jordan’s second round of renewable energy projects. Acwa took over the project last year.

Currently around 1 gigawatt of solar and wind projects are being built in the country, as Jordan aims to have renew­ables make up 15 per cent of its energy mix in just three years. The country is readying its third round of solar and wind tenders, which much like the previous rounds will result in 200MW of solar PV to be located in the Ma’an area and 100MW of wind power in the south of the country.

Ziad Jibril, the adviser to Jordan’s energy ministry, said that 35 companies were interested in this upcoming round. “We’re expecting to receive lower prices, around half the amount seen in the second round, which would mean a price between 4 and 5 cents,” he said.

As the price tag for solar drops across the globe, it has resulted in the UAE getting one of the lowest costs in the world at 2.99 cents per kWh for the 800MW third phase of Dubai’s Mohammed bin Rashid Al Maktoum solar park. This is because the UAE has many advantages over other countries in the region, such as a high credit rating, stability and cheap land.

Paddy Padmanathan, the chief executive of Acwa, said that capital costs continued to decrease in Jordan, although at a slower pace with so much reduction already absorbed.

Follow The National's Business section on Twitter