Yellow Door Energy raised $31.2 million to develop distributed PV projects in Jordan
Post date: 09/02/2021 - 12:05
UAE-based solar developer Yellow Door Energy has raised $31.2 million loan to develop distributed solar projects in Jordan. The European Bank for Reconstruction and Development (EBRD) and German DEG are providing the company with a $10.6 million loan for the development, construction and operation of a portfolio of eight PV plants in Jordan. The financing is complemented by a loan of up to $5 million provided by the Global Environment Facility (GEF), a parallel $15.6 million DEG senior loan and an equity contribution from Yellow Door Energy. Spain is also providing results-based payments of up to €1.5 million ($1.8 million), as well as technical assistance together with the European Union.
The electricity generated will supply five private consumers: Umniah (telecommunications industry), Carrefour supermarkets, Safeway supermarkets and Taj Mall (retail industry) as well as Classic Fashion (garments manufacturing). In total, 48.3 MW of renewable energy capacity will be added to Jordan’s power system, generating over 81 GWh of renewable electricity per year.
According to the company, it is the largest portfolio of private-to-private renewable projects involving supply directly to the private sector under Jordan’s »Electric Power Wheeling« regulations. These regulations allow customers to establish and lease or own renewable energy plants and connect them to the transmission or distribution system at remote locations in order to generate power for their own consumption.
Yellow Door Energy, founded in 2015 in the United Arabian Emirates and Jordan, has developed more than 110 MW of solar projects in the Middle East and South Asia. Shareholders include the International Finance Corporation, Mitsui, Equinor and APICORP.
German development finance institution DEG is part of the state-owned KfW Group, which has been working in Jordan since 1961 and has invested €1.7 billion since 2007. Since the start of its operations in Jordan in 2012, the EBRD has provided more than €1.4 billion in financing for 54 projects there.