EBRD, GEF and DEG grant $ 31.2 million loan to Yellow Door for solar projects in Jordan

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The European Bank for Reconstruction and Development (EBRD) and DEG have granted a loan of $ 10.6 million in local currency to Yellow Door Energy, a renewable energy company based in the United Arab Emirates, to develop and operate a portfolio of eight solar projects in Jordan.

The bank also mobilized $ 5 million provided by the Global Environment Facility. DEG, the German development finance institution, and an equity contributor to Yellow Door Energy, provided $ 15.6 million in senior loans for these projects.

The projects, with a total capacity of 48.3 MW, will generate around 81 GWh of renewable energy while reducing 49,000 tonnes of carbon dioxide emissions per year. The electricity produced will be supplied to Umniah, Carrefour supermarkets, Safeway supermarkets, Taj shopping center and Classic Fashion.

Spain to provide technical assistance to establish a digital monitoring, reporting and verification (D-MRV) system and results-based payments of up to € 1.5 million (~ $ 1.79 million) to monetize the portfolio’s greenhouse gas emission reductions. The portfolio is also registered with Verra’s Verification Carbon Standard, a voluntary global program to reduce greenhouse gas emissions.

“Historically, Jordan has depended on imported hydrocarbons to meet its energy needs. Over the past decade, the country has developed its renewable energy sector, in particular solar energy, in order to remove dependence on imported hydrocarbons and reduce their environmental impact, ”said the EBRD.

Currently, Jordan generates around 20% of its energy from renewable energy resources, exceeding its target of 10% renewable energy production. The country has set a new renewable energy production target of 30% by 2030.

Yellow Door Energy said it has around 110 MW of solar projects in the Middle East and South Asia. The company’s shareholders include the International Finance Corporation, Mitsui, Equinor and Arab Petroleum Investment Corporation.

The EBRD said it has provided more than 1.4 billion euros (about $ 1.67 billion) in financing for 54 projects in Jordan since 2012.

Last year, Arab Petroleum Investments Corporation, a multilateral development finance institution, announced that it would provide a $ 50 million (about 3.6 billion yen) renewable construction facility to Yellow Door Energy.

Mercom previously announced that the EBRD would provide financing of up to $ 35 million to Kawar Investments to develop a 37 MW solar project in Jordan.


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