The Tafileh wind farm is expected to produce electricity at a price up to 25 per cent less than that of thermal power while avoiding the emission of 224,000 tonnes of carbon dioxide annually, according to the IFC.
“With fossil fuels becoming increasingly expensive, and the spectre of climate change looming, it is important for countries like Jordan to harness renewable energy,” said Mouayed Makhlouf, IFC director for the Middle East and North Africa.
“At the same time, it is vital for lenders to support the sector, and this project will help demonstrate its potential,” he added.
The investment is part of an IFC effort to increase the use of renewable energy in the Middle East and North Africa, where abundant sunshine and strong winds make it a natural fit.
Jordan has made strong progress in the renewable energy field, developing several solar and wind power projects while aiming to have renewables account for 10 per cent of electricity generation by 2020.
The Tafileh wind farm is the first of these projects to reach financial close.
Eksport Kredit Fonden, the European Investment Bank, FMO, the OPEC Fund for International Development and Europe Arab Bank also participated in financing the project.