Project detail - SHAMSUNA POWER COMPANY LLC.

SHAMSUNA POWER COMPANY LLC.

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Who is our client

Shamsuna Power Company LCC is a company established for the development, construction and operations of a 10MW solar photovoltaic (PV) power plant project located in the Aqaba Special Economic Zone, south of the capital Amman, in Jordan.

Funding objective

The project has an estimated cost of US$21 million. FMO is participating in the debt financing mobilized by IFC with a senior loan of US$3.65 million. The project also comprises the construction of a 6km 33kV transmission line connecting to a NEPCO substation in Aqaba’s thermal power station. All output generated by the Project will be sold to NEPCO under a 20-year Power Purchase Agreement (PPA). The project is part of the Government of Jordan’s Renewable Energy Program, which aims to increase renewable energy contribution to 10 percent of the country’s generation mix by 2020.

Why we fund this project

This solar PV power plant will generate over 19GWh (at P50), meeting the growing demand for electricity in Jordan by serving approximately 9,000 customers annually based on a per capita consumption of 2,100 kWh. It will diversify the fuel mix for Jordan and provide for energy security by generating electricity from a domestic resource, while also displacing thermal power that has a marginal cost of approximately 30% above the tariff. This will help to alleviate the losses borne by NEPCO. Finally, through the provision of clean energy this project will avoid the emission of approximately 10,745 tons of CO2 per annum.

Website client
http://www.shamsuna.com
Region
Asia
Country
Jordan
Sector
Energy
Signing date
9/30/2014
Total FMO financing
USD 3.65 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B