Hareon Solar inks 61-MWp PPA in Jordan

Chinese firm Hareon Solar Technology Co Ltd (SHA:600401) said Tuesday it has signed a grid-connection deal and a 20-year power purchase agreement (PPA) for a 61-MWp photovoltaic (PV) plant in Jordan.

The company’s wholly-owned subsidiary in the kingdom, called Al Ambaratouria LL Taka Al Shamsia, was the one to enter into the contracts with the National Electric Power Co (NEPCO) on December 6. Construction works at the site are scheduled to kick off in the second half of 2016, with completion expected in early 2017.

The solar project is estimated to require a total investment of about USD 75 million (EUR 69.1m). The European Bank for Reconstruction and Development (EBRD) and International Finance Corporation (IFC) have already expressed strong interest in providing up to 80% of that by way of a 18-year financing facility, according to the press release.

Hareon Solar noted that it had won the development rights over the project in a competitive auction organised by the Jordanian Ministry of Energy and Mineral Resources. As a result of the firm’s successful bid in the national tender, the country's Ministry of Finance will provide government guarantees and has confirmed that the project will take advantage of all possible tax benefits.

China-based Hareon Solar makes solar equipment and also develops, builds and operates PV parks worldwide. Last week, the solar company announced that it will establish a subsidiary in Switzerland with the ultimate goal of investing in PV schemes in Jordan.

(USD 1.0 = EUR 0.921)

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