After a shock setback in the Saudi Arabia solar power tender, Masdar Clean Energy has something to cheer about as its solar power project in Jordan secured funding.

The International Finance Corporation (IFC) recently announced that it sanctioned funding worth $188 million for a 342 megawatt (DC) Baynouna solar power project being developed by Masdar in Jordan. The project is the largest solar power project in Jordan. 

IFC will provide $54 million, while the balance of $134 million will be secured through other agencies, including Japan International Cooperation Agency (JICA), Dutch Development bank FMO, and Europe Arab Bank as B lenders and OFID, the OPEC Fund for International Development and German development bank DEG. IFC also played a major role in financial closure for the 117 megawatt Tafila wind farm, the largest wind energy project in Jordan, also developed by Masdar. Finnish asset manager Taaleri Oyj recently acquired a 30% stake in the project.

The Baynouna solar power park is expected to be commissioned in 2019 and will fulfill the electricity needs of around 110,000 homes and offset an estimated 360,000 tonnes of carbon dioxide emission every year. The total cost of development of the project is estimated at $260 million. Once commissioned, the project will supply electricity to the National Electric Power Company through a long-term power purchase agreement. With an estimated 563.3 gigawatt hours of electricity generation each year, the project will meet around 3% of Jordan’s annual energy consumption.

Jordan has set a target to procure 15% of its electricity from renewable energy sources by 2020, and hopes to reach an installed renewable energy capacity target of 1.8 gigawatts by that year. The two projects being developed by Masdar will account for 18% of that capacity.

Masdar recently lost out in a 300 megawatt solar power tender in Saudi Arabia despite having quoted the lowest-ever solar power tariff of ¢1.78/kWh.