November 30 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) and Banque Marocaine du Commerce Exterieur (BMCE) announced on Friday they will provide a financing package of EUR 126 million (USD 133.3m) for the development of the Khalladi wind farm in the vicinity of Tangiers.
The loan is estimated to cover about 77% of the project costs. The rest will be contributed by the developing company, which is 70% owned by Saudi Arabia's ACWA Power Global Services LLC, 25% by ARIF, a North-Africa and Sub-Saharan Africa infrastructure fund managed by private equity manager Infra Invest, and 5% by UPC Renewables North Africa.
The 120 MW wind farm will be one of the first private renewable energy projects in Morocco to be developed under the 13/09 renewable energy law that allows private producers to sell electricity directly to clients connected to the high voltage and medium voltage grid, mainly industrial companies.
Khalladi will also be the EBRD’s and BMCE’s first renewable project relying on commercial offtake agreements and not on any state support.
The wind farm will comprise 40 wind turbines of 3 MW each, most likely provided by Vestas Wind Systems A/S (CPH:VWS), although the Danish wind turbine maker today noted there was no final order in place at this point.
According to ACWA Power 85% of the power output of the wind farm will be sold to three major industrial clients while the rest will be sold via short-term electricity supply contracts or sold to national electricity and water utility company ONEE.
The wind farm is the first project under the EBRD’s new USD 250 million financing programme for renewable energy generation in the southern and eastern Mediterranean, which supports the generation of renewable electricity by private sector energy companies in Morocco, Egypt, Tunisia and Jordan. The EBRD loans under the programme are complemented by financing from the Global Environmental Fund and the Clean Technology Fund.
(EUR 1 = USD 1.058)