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.
Multilateral developmental investment lender European Bank for Reconstruction and Development (EBRD) will provide a USD 265 million loan to Jordan’s National Electric Power Company (NEPCO).
After the successful deployment of the first rounds of renewable energy in Jordan, the Bank is supporting the country in its next important step to boost the role of renewables in the energy mix.
Further, 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.
Alongside the loan, the Jordanian government, NEPCO and EBRD have agreed on an ambitious programme of reforms that will strengthen NEPCO’s governance and operations. This will be supported by grant-funded technical cooperation assignments.
The construction of new substations, automated grid management systems and transmission infrastructure will improve the integration of green energy into the national electricity network.
As a result, solar energy generated in the north and south of Jordan will be able to feed into the grid and be directed towards areas with high demand, such as the capital Amman.
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.
Since the start of its operations in Jordan in 2012, the EBRD has provided over EUR 1 billion in 40 projects, including more than USD 466 million of loans to 12 projects within the country’s power and energy sector. The Bank has also invested more than EUR 12 billion in 306 projects in this sector in the economies where it invests.