by Mohammad Ghazal | Aug 10, 2014

AMMAN — Jordan is in discussions with Masdar, Abu Dhabi’s renewable energy company, to build solar and wind power plants in the Kingdom, according to Energy Minister Mohammad Hamed.

“We are in talks with the government-owned company and they have plans for building a solar and wind power plant with a total capacity of 1,000 megawatts [MW],” Hamed told The Jordan Times Sunday.

The two sides are expected to sign a memorandum of understanding related to the project by the end of this year, according to the minister, who said the plant will be financed by Masdar.

The total volume of the project is to be announced later, he said, adding that progress in its implementation is directly linked to securing financing to expand the capacity of the national grid to absorb new capacities from renewable energy projects.

Last week, the government said it cancelled plans to accept proposals to build four renewable energy power plants with a total capacity of 100MW each after failing to secure financing to expand the national grid, whose capacity stands at 3,200MW at present and can accept another 500 megawatts.

In early 2013, Jordan signed a framework agreement with Masdar to allow the firm to play a prominent role in the development of renewable energy in the Kingdom.

The agreement details a collaborative plan for Masdar to strategically engage in Jordan’s transition from hydrocarbon reliance to a more diversified and secure energy mix.

The agreement has two components: facilitating competitive tenders for renewable energy projects for Masdar in Jordan; and creating a public-private partnership between the two parties allowing the Kingdom to consult directly with Masdar on the viability of domestic projects and leverage its expertise in the delivery of those projects.