Tafila Wind made Jordan's renewable power financeable with one bankable PPA

Jordan had strong wind and solar resources, but its power system still depended heavily on imported fuel. The problem was not only technology; it was how to make a private renewable plant financeable in a market with little precedent.

Jordan Wind Project Company built Tafila as a 117 MW independent power producer with a 20-year PPA to NEPCO. EIB said the 2013 financing package supplied US$220 million, about 77 percent of project cost, with IFC, EIB, EKF, OFID, FMO and Europe Arab Bank participating.

The plant reached commercial operation in 2015. IFC later said Tafila could power 80,000 homes, helped clear the way for another 600 MW of renewable projects, and preceded US$1.6 billion of agreed wind and solar investments.

Bank the offtake before building turbines

The PPA converted variable wind output into a financeable revenue stream.

MDB participation gave commercial lenders confidence in a first renewable-energy project under Jordan's new law.

The financing stack mixed senior, mezzanine and mobilized loans instead of waiting for one local lender to carry the whole risk.

A successful first IPP created documents, standards and confidence for later renewable projects.

New infrastructure markets often need one contract that lenders can underwrite. The first bankable deal becomes the template others can copy.

Tafila became Jordan's proof point for private renewable generation. IFC says it helped open the door for later wind and solar arrays, while EIB framed it as a milestone in diversifying Jordan's generation mix away from imported fuel.