The European Bank for Reconstruction and Development (EBRD) has said it will provide $265 million long-term loan to Jordan’s National Electric Power Company (NEPCO). The fund will be used to improve the integration of renewable energy into the grid. Apart from this, the loan will also help NEPCO to refinance its existing short-term debt.
To reform the governance and operations of NEPCO, the Jordanian government and EBRD will support it by giving grant-funded technical cooperation assignments.
NEPCO will construct new substations, automated grid management systems and transmission infrastructure for better integration of green energy into the national electricity network. This will allow solar energy generated in the north and south of Jordan to feed into the grid and be transmitted towards areas with greater demand of electricity, like its capital Amman.
The EBRD has provided over €1 billion (~$1.1 billion) in 40 projects since the beginning of its operations in Jordan back in 2012, out of which $466 million of loans are given for 12 projects in power and energy sector.
Earlier, Mercom reported that the International Finance Corporation (IFC), a member of the World Bank Group, arranged a financial package of up to $188 million for the development of a 248 MW solar project in Jordan.
EBRD has helped many other countries in developing renewable energy projects.
Recently, EBRD also signed an agreement with a German company, Joachim Goldbeck Holding GmbH, to develop a 100 MW solar project in the Karaganda region of Kazakhstan. This would be the largest solar power project developed at one time in Central Asia.
Mercom reported that EBRD also signed its first green economy financing facility (GEFF) in Lebanon. The EBRD and Bank Audi, the largest bank in Lebanon, joined forces for the expansion of renewables by providing $100 million each for green projects in Lebanon. This included the first loan under the EBRD’s GEFF for the country.