The European Bank for Reconstruction and Development (EBRD) will provide a $265 million loan to Jordan's National Electric Power Company (NEPCO) to support the country in boosting the role of renewables in its energy mix, the bank announced Tuesday.
"The loan will strengthen NEPCO's balance sheet through refinancing of existing short-term debt and will fund vitally needed investments to enhance the capability of the grid to absorb and manage renewable power," a statement read.
According to the press release, the Jordanian government, NEPCO and the EBRD have also agreed on an "ambitious" reform program that will strengthen NEPCO's governance and operations. This will be supported by grant-funded technical cooperation assignments.
"Construction of new substations, automated grid management systems and transmission infrastructure will improve the integration of green energy into the national electricity network," the bank said.
"As a result, solar energy generated in the north and south of the country will be able to feed into the grid and be directed towards areas with high demand, such as the capital Amman," it added.
According to the statement, NEPCO has been at the heart of Jordan’s renewable revolution, which leads the way in using private capital and skills to unlock the country's wind and solar resources.
Since the start of its operations in Jordan in 2012, the EBRD has provided over €1 billion in 40 projects, including more than $466 million of loans to 12 projects within the country's power and energy sector.
The EBRD has also invested more than €12 billion in 306 projects in this sector in the economies where it invests.
By Hale Turkes