“Today Everything Has To Be Energy Efficient, Green And Renewable. It’s Not an Option, It’s A Must”

OPEC Fund Quarterly: What were the origins of the Jordan Wind Project Company (JWPC) and the facility in Tafila? 

Samer Judeh: The company was founded back in 2012 for the purpose of financing and operating the Tafila wind farm project. The lead developer, EP Global Energy (EPGE), was the first investor. Later we attracted other players such as Masdar, the renewables developer and operator from UAE, and InfraMed, a French-led infrastructure investment fund. Our mandated bank for Tafila was the International Finance Corporation (IFC), the World Bank’s private sector arm, but from the outset it was important to us to have the OPEC Fund on board too. 

OFQ: What makes the Tafila wind farm project stand out? 

SJ: It was a landmark project. Tafila was the first and largest privately sponsored utility-scale renewable energy project in the Middle East and the region at that time. We worked with the government and the national power company to develop the necessary legislation and regulations. It was pioneering work, because they became templates for all the later projects not only in Jordan, but also in Egypt and the region. 

OFQ: How did investment in renewables progress in Jordan? 

SJ: When we started, back in 2010, there was no investment in renewable energy in Jordan. Today, we have a stock of investments in excess of US$4 billion in solar and wind. The installed capacity is about 2,700 MW. The Tafila wind farm was pioneering because it was the first and it paved the way for many other projects, which were able to replicate the same model. It has been incredibly busy, yet productive. My phone has not been switched off since 1995. 

OFQ: And one of these calls was between you and the OPEC Fund? 

SJ: IFC worked with us on a debt package and we evaluated potential lenders. The OPEC Fund was one of the first we talked to as it was one of the institutions we definitely wanted on board. And we were not disappointed. We developed a great relationship and signed a loan agreement in 2013. The contract is still active and we never had any issues. It was really perfect. 

OFQ: Why did you seek loans from development banks and not from the private sector? 

SJ: You have to look at the landscape in Jordan at that time. There were no renewables. Jordan does not have any significant natural resources in the energy sector. We used to import 97 percent of our energy needs in the form of heavy fuel and petroleum. Our project cost was US$287 million, but private banks at that time did not have the appetite for such a huge amount. They would say, “Before we see a project happening, we’re not going to get involved. And if we get involved, that’d be for a couple of million dollars only.” That’s why we started talking to development banks. 

OFQ: And once you had IFC on board you were very successful in attracting other development banks. Was this your breakthrough? 

SJ: Indeed. Eventually we had IFC, OPEC Fund, Europe Arab Bank (EAB), European Investment Bank (EIB), Dutch Entrepreneurial Development Bank (FMO) and Danish Export Credit Agency (EKF) on board. These lenders giving a sense of confidence, providing stability and delivering on their plans had a huge and lasting impact. It helped us to win global and prestigious sponsors such as Masdar, InfraMed and, later on, the Saudi infrastructure developer Tamasuk and the Arab Energy Fund (TAEF). Despite the regional political challenges all these stakeholders had confidence in Jordan’s stability and investment climate. That in itself is a remarkable achievement. 

OFQ: It demonstrates the impact that development finance institutions can have. 

SJ: I agree. At the end of the day, the impact of this project is not the 117 MW the facility generates or the US$287 million it cost. The real impact is the groundwork, the contracts, the creation of the sector, the establishment of renewables as viable alternatives, the billions of dollars that were mobilized and the development of a sustainable energy mix for a country that lacks natural resources. 

OFQ: What was crucial for the success of our project? 

SJ: The most important thing was the unity of all stakeholders: the investors who put their confidence in the development team, the lenders who put their confidence in the bankability of the project, but also the opposite side of the table, the government and the off-taker. It wasn’t easy for them either. Trust has to be built slowly and carefully. It took us three years before we had all the studies together, from feasibility to environmental impact assessments. We had to satisfy the lenders that our project was financially viable, the off-taker that we could guarantee reliable supplies and the government that we needed a sovereign guarantee to secure funding. I personally worked, along with many others in the sector, with the government and parliament on establishing laws on renewable energy and energy efficiency, which did not exist. 

OFQ: Since these early days, Jordan has come a long way. 

SJ: The country really benefited not just from cheaper electricity, but also from the change of course. Today everything has to be energy efficient, green and renewable. It is no longer an option, it is a must. If your factory does not have a green certificate, your markets are going to be very limited. Everybody needs a clean bill of health. And Jordan is now a frontrunner in the renewable energy sector. 

OFQ: What is the share of renewables in Jordan today? 

SJ: Today it is 27 percent. Because of our success, we raised our goals from 30 percent renewables in the energy mix by 2030 to 50 percent, because we almost reached the 30 percent in 2023 already. We have to be a bit more ambitious. 

OFQ: With such a huge share, how do you secure a stable base load? The wind does not always blow, the sun does not always shine and 50 percent cannot easily be substituted. 

SJ: We definitely cannot reach the 50 percent target before we have other solutions. The two ways forward are storage and interconnectivity. We are working on an interconnection line with our neighbors Iraq and Saudi Arabia. We have a small interconnection line with Jericho in the West Bank and we have interconnectivity with Egypt. Once we have everything in place, we will reach 60 or 70 percent. 

OFQ: Given your track record, do you foresee the possibility for technology transfer to a neighboring country? 

SJ: We already had successful examples of technology transfers in the past. Our sponsors, for instance, provided technical and financial support through their professional teams who have worked on similar projects in different places. This support continues. Today Tafila attracts many visitors who want to study and copy our success. We welcome this. Most recently we hosted a delegation from Oman. Many Jordanian developers, engineers and technical teams are now working in countries across the region, developing and delivering similar renewables projects. Our success has been built from scratch: Back in 2010, there was almost zero investment in renewables. There were few engineers in renewables. There was no sector, there was no legislation and there were no environmental standards for such projects. 

OFQ: Have Jordanian customers also benefited? 

SJ: Everywhere in our capital Amman today you will see solar panels on the rooftops of houses, apartment buildings, factories, hospitals, military installations and government offices. I was one of the first people to put a solar installation on the rooftop of my house back in 2012. I paid US$50,000 for it. Today I can have the same system for US$7,000 and I will not need to bring a company from Germany to install it. There are more than 1,200 Jordanian companies with local engineers in the sector and they can offer a wide range of options. In less than 15 years, we have created a US$4 billion sector. 

Samer Judeh 

Samer Judeh is the co-founder and Executive Chairman of the Jordan Wind Project Company. Mr. Judeh has been instrumental in the development, construction, operation and management of the 117 MW Tafila wind farm. He was also the founder and chairman of the Shamsuna power company, which developed, constructed and is currently operating the first utility-scale solar project to connect to the Jordanian national grid. A Jordanian businessman, he has over 30 years of experience in renewable energy, information technology, security and infrastructure. Judeh holds a Bachelor’s in Business Administration and a Master’s in Arab Studies from Georgetown University, Washington DC. 

The Tafila wind farm 

The Tafila wind farm was the first commercial utility-scale wind power project in the Middle East. Located in Jordan, the 117 MW wind farm has increased the country’s total power capacity by 3.5 percent. The US$287 million project was the first wind power project to be developed under Jordan’s Renewable and Energy Efficiency Law passed in 2010 and became operational in September 2015. The facility has annually reduced Jordan’s CO2 emission by 235,000 tonnes, produces 390 GWh of electricity and powers 83,000 homes. The Tafila wind farm was developed by the Jordan Wind Project Company and is owned by a consortium of international partners. It has won several international industry awards.