Kawar Energy

View the Brochure

In July news broke about Jordan’s plans to attract US$14 billion in energy infrastructure investments by 2020, hotly pursued by energy majors the world over seeking to take part. In early August, the Kingdom’s government launched the Jordan Environment Fund (JEF) and applications for socio-economically sound, alternative energy sourcing projects began to flood in. One of the world’s most veritable landscapes in terms of a natural propensity for solar and plenty of available, ideal terrain, it is plain to see why the nation is such an attractive option for would-be energy operators, manufacturers and project developers.

Underpinning the financial, technological, political and project-development progress now underway, there is one globally renowned project which appeared on the scene over three years ago; long before the government and big business take-up followed suit.

The venture in question is, of course, the Shams Ma’an photovoltaic (PV) solar power project: among the largest PV plants on earth, braced to provide first stage power generation capacity of 100 megawatts, Shams Ma’an One, once complete in 2013 and brought into production (with 500 megawatts or more in line with future expansions). It is the brainchild of investor/developer Kawar Energy (“KE”) in a Joint venture with Solar Ventures, Italian based solar project developer  and 1st international, Jordanian investment company, working in partnership with the Ma’an Development Area’s (MDA) Industrial Park. Worth between $300 million to $400 million and spanning two million square metres, Shams Ma’an is leading the charge when it comes to putting plans for Jordan’s future energy industry into practise.

“When we announced Shams Ma’an, others announced renewable energy projects and we would like them to materialise too. It’s important for us to keep on pushing towards that,” KE CEO Mr Hanna Zaghloul tells IRJ.

“For the region, as one of the best areas in the world for solar radiation and available land, there is a need to be more active, to work harder to move forward—especially in solar. The price of solar PV technology is dropping, oil prices are going higher, and there’s a good opportunity for the region to use these technologies, create jobs and reduce our carbon footprint.”

As an energy import-heavy Kingdom, Jordan needs Shams Ma’an. In order for the country to harness its overwhelming solar potential, this large scale, commercially attractive venture could prove to be the country’s gateway not just into renewable and alternative energy sourcing, but to greater energy independence as well.

Attractive for Jordan and industry

Oil hit all-time highs in 2008, and $145 per barrel pricing warranted further investigation into alternative energy sourcing for everyone. In Jordan’s case, Zaghloul explains, this was particularly pertinent given the nation’s energy 96 per cent yearly import to meet national requirements.

“For Jordan, given that there’s over 320 days of sunshine and very vast expanses of desert not being used, it’s a no-brainer that solar is part of that solution. It can help Jordan on its quest for energy independence, and at the same time create jobs, transfer technology and bring in investment,” he says.

Already working with global majors in other areas such as oil shale and uranium, his team pulled together its efforts inside KE. As a project developer, it covers a wealth of different energy solutions, and having announced Shams Ma’an at the World Economic Forum at the Dead Sea in 2009, the company’s hard work and drive was thrust into the international spotlight. It wasn’t long before interested parties emerged from the realms of technology, financing, EPC and beyond—signalling that the project was most definitely on the right track in terms of both Jordan’s needs and opening doors for future ventures.

“Along the way other companies have announced renewable energy projects which has built momentum behind Jordan putting some type of pressure on the government to move forward with renewable energy,” Zaghloul explains.

“Today we’ve reached the level whereby we can aid the government through an association that we started, EDAMA, to work closely, among many other issues, on the renewable energy law, which was issued in early February 2010.”

Started  as a private initiative supported by USAID, EDAMA now an established business association,  acts as a vital mechanism for upping the momentum Zaghloul speaks of, most recently resulting in the JEF, following expressions of interest, such as the one by The Ministry of Energy and Mineral Resources for Renewable Energy Generation Projects;  relating to private sector investment made in the past few months. When private entities can put together the right project components, they are able to gain government interest in their work and subsequently advance their projects, Zaghloul says; and in late August that is exactly what Kawar consortium hopes to do when it presents Shams Ma’an One.

Using timing and gaining support

When KE began working on this massive solar project, others of 10, 15, 20 and 30 megawatts were reasonably commonplace. Undertakings of 100 megawatts were far scarcer with the best known situated in Australia and Morocco (and the latter coming after Shams Ma’an). Keen to put together a project that would make entrance into Jordan worthwhile, for globally operating energy groups, and in order to attract suitable investors, KE chose to pursue a project that would make people take notice and listen.

“As we continued to develop the project, they started to see the seriousness we had about it, and in May 2010 we did a conference presentation. More than 200 delegates came—beyond our expectation at the time—from all over including the U.S., Italy, Spain, Germany, even China and Japan,” Zaghloul recalls.

“And the government saw [that] coming in with a large scale project attracted the right people with serious money, technology and credibility to construct it.”

More recently in May this year, KE and its partners commenced the Solar Technology Qualification Works in Ma’an: a technology evaluation project, scheduled to continue concurrently with Shams Ma’an and allow those involved to harness the very best solar technology for Jordan on an ongoing basis. This was done, Zaghloul says, in sync with the time gap KE has spotted in terms of government energy pricing projections. As KE waits for further direction about how the nation’s authorities intend to price and use energy produced by Shams Ma’an, what better time could there be to hone the project’s economic position by surveying the best technologies on offer? Having attracted a number of international players, including Trina Solar, First Solar, Soitec, LG Energy, Day4 Energy and SunTech, it certainly appears that industry is in agreement.

“This is situated next to the land that we’re going to be constructing the project on—5,000 square metres just to do the evaluation and the testing for these sorts of technologies to see how best they perform,” Zaghloul says.

“As the government takes its time, it has given us more time to do things including signing the grants with the USTDA  (U.S. Trade & Development Agency), to establish the evaluation field, to bring semi-government energy entities in to work with us such as the National Energy Research Centre in solar, and to have time for feasibility work.”

In March, KE and globally-operating feasibility specialist CH2M HILL began carrying out the survey now underway, due for completion by the year-end/first quarter 2012. This ranges from setting evaluation field  for technologies implemented into the project study, to looking at environmental/social impacts and putting an implementation plan in for the project to select the best technology to utilise.

“Providing everything goes the way we foresee with Shams Ma’an One, the first phase towards 100 megawatts, with respect to the government we can go as large as 500 megawatts or more. There’s a real chance for similar technology players here,” Zaghloul explains.

“If the interested players miss the first of our opportunities, we can take them to the second or third; that’s why with the evaluation field we’ll be investing more in it as technology keeps on developing. It’s something we intend to keep running in order to implement the best and most suitable solar technology for Jordan.”

A big project and bigger picture

As part and parcel of a future alternative energy industry for Jordan, come opportunities for job generation, social development and further-reaching economic prosperity; all exemplified by KE’s work alongside Shams Ma’an. In addition to employing the skills and attention of major energy companies, universities, investors and industry globally, the group is helping and supporting in setting up a professional learning centre to begin creating the training capacity required for installers and technicians and various other roles.

“This is the south of Jordan, not a highly-developed area, and doing these sorts of projects can have a great affect on the local people by generating work opportunities for them,” Zaghloul says.

“We’re engaging people on all fronts, and at the end of the day these efforts will only support any future expansion once this project comes to life.”

Some two years ago, Zaghloul wrote an article about why it is important for the region to use oil for more than burning for electricity and the petrochemical industries. Today KE is setting the wheels in motion for this development to take place. Shams Ma’an’s role in Jordan’s burgeoning energy landscape cannot be underestimated, and the progress made in the coming year will be instrumental to future development for the sector in Jordan. As the region is waking up to the massive economic benefits to embracing future industry, KE will lead the way with this landmark project. 

www.kawar.com