Wind energy in Jordan: first wind farm is back on track

The government has reopened negotiations with the original bidder, the Greek firm Terna Energy, for the construction of a 30-40 megawatt wind turbines plant in Kamshah, Khalid Irani told the newspaper.

The wind farm, which is to be constructed on a build-operate-transfer basis with financing provided by the World Bank, was scheduled to be operational this year.

"We have reopened negotiations with the original bidder," Irani told The Jordan Times on the sidelines of a conference on Monday.

Proposals for the wind farm, which would be the country’s first commercial wind power project, have been rejected twice over the price of electricity tariffs quoted by the Greek firm, according to the ministry.

Last year, the tender for the small-scale wind turbines farm garnered the interest of two international companies, a Russian firm and Terna, with whom the government entered negotiations.

The main obstacles to concluding the agreement were the high tariffs and prices quoted for electricity included in the proposal, ministry officials had told The Jordan Times. Officials have indicated that the prices were based on high oil prices due to the economic situation when the proposal was crafted in late 2008.

The plant, which is to be constructed on a build-operate-transfer basis with financing provided by the World Bank, was scheduled to be operational this year as the Kingdom’s first wind power plant.

Known for its affordability and relatively quick construction period, authorities have prioritised wind energy as a key part of the Kingdom’s strategy for greater energy independence, expected to account for 1,600 megawatts by the year 2020.

The Renewable Energy Law allows the ministry to negotiate with companies directly, and requires proposals for projects to state fixed electricity tariffs.

Authorities are currently considering an incentive system to promote investment in wind energy, including feed-in tariffs, which fund the gap between the price of electricity produced by renewable energy and electricity produced by conventional methods. As of 2009, 63 feed-in tariff laws have been enacted around the world.

Source: Jordan Times 2010, www.jordantimes.com/