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APICORP acquires 20% stake in Tafileh wind farm

By JT - Jun 18,2020 - Last updated at Jun 18,2020

The Arab Petroleum Investments Corporation (APICORP) invests in Tafileh Wind Project in Jordan with the acquisition of 20 per cent stake (Photo courtesy of APICORP)

AMMAN — The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, on Wednesday announced its first direct equity investment in a wind energy venture, the Jordan Wind Project Company (JWPC), the developer of the Tafileh Wind Project in Jordan.

APICORP’s 20 per cent equity stake in the project also marks its first equity investment in the country, according to an APICORP statement.

JWPC’s seeks to have clean energy account for 20 per cent of the country’s overall power generation by 2021, thus developing new and sustainable energy sources as part of the country’s energy mix.

The $287 million 117-megawatt wind farm, connected to the national grid, accounts for 12 per cent of Jordan’s total operating renewable energy generation, generating around 350GWh of clean energy, annually, which can be used to power 83,000 homes.

Tafileh Wind Farm is owned and operated by the Jordan Wind Project Company PSC (JWPC), in which Abu Dhabi’s renewable energy firm Masdar owns a 50 per cent stake. APICORP and Tamasuk Holding, the infrastructure and development arm of Al Blagha Holding for Investments Co., partnered to acquire the remaining 50 per cent stake, owning 20 per cent and 30 per cent stakes, respectively.

Commenting on this new tie-up, Ahmed Ali Attiga, chief executive officer of APICORP said: “We are proud to partner in the Jordan Wind Project Company, one of the MENA region’s pioneering energy companies. This equity investment affirms APICORP’s position as a trusted partner to the region’s energy sector and underscores the strategic drive to enhance access to sustainable power, an area in which Jordan continues to be a regional leader. “

“With the Arab world’s abundant wind resources, we see wind power as a viable component and key technology in the region’s future power generation mix, offering a sustainable, cost-effective energy source that will enable wider access to modern electricity to millions of people and spur employment and economic growth,” he added.

Mohammed Al Balwi, chairman of Tamasuk Holding Company noted that the Jordan Wind Project Company is a strategic investment, stressing Tamasuk Holding’s commitment to sustainable infrastructure.

“We are immensely proud of our partnership with leading institutions like Masdar and APICORP. With this investment, we have established a presence in the Kingdom of Jordan and look forward to growing our asset base in sustainable infrastructure investments such as Tafileh Wind Farm,” he said in the statement.

According to the Global Wind Energy Council’s (GWEC) Global Wind Report, published in February, Jordan’s 190 megawatts of wind power capacity trails only Egypt (262 megawatts) and Morocco (216 MW) in the MENA region.

Masdar’s CEO, Mohamed Jameel Al Ramahi expressed his business satisfaction with the new partnership.

“Masdar is pleased to welcome APICORP and Tamasuk Holding as partners in the Jordan Wind Project Company and the Tafileh Wind Farm, the first utility-scale commercial wind project in the Middle East. The involvement of these prestigious entities signals the confidence of the regional investment community in the potential of renewable energy to become a large-scale and reliable provider of the Middle East & North Africa’s power needs. It further illustrates the success of the Hashemite Kingdom of Jordan in diversifying its energy mix, using both wind and solar power,” he noted.

According to Samer Judeh, JWPC chairman, the Tafileh Wind Farm is playing a leading role in responding to the growing energy demand in Jordan, effectively utilising the wind potential in the country.

“The involvement of APICORP and other leading industry players like Masdar and Tamasuk Holding demonstrates the economic viability of this project and validates our vision of generating clean and sustainable energy in Jordan.”

“The investment by APICORP will encourage further investment in renewable energy generation and contribute to the country’s mission of diversifying its domestic energy supply,” he said.

APICORP’s recently issued MENA Energy Investment Outlook 2020-2024 report indicates that the MENA region will need to invest $144b in the power sector to meet energy needs.

Moreover, the GWEC report forecasts that 10.7 gigawatts of wind energy capacity will be installed in the MENA region during the same period, a 167 per cent increase from the current 6 gigawatts currently installed, according to the statement. 

 

 

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