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171117_SECAP of Greater Irbid Municipality_SET_rev2

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The action framework is obtained from the publication <strong>of</strong> International Finance Corporation (IFC)-2015. More details<br />

are available at the full report, accessible through the following link.<br />

http://www.ifc.org/wps/wcm/connect/f05d3e00498e0841bb6fbbe54d141794/IFC+Solar+Report_Web+_08+05.pdf?M<br />

OD=AJPERES<br />

It is very important to successfully develop, finance, construct and operate utility-scale solar PV power plants. The project<br />

development process should be the action’s first part including site identification, plant design, energy yield,<br />

permits/licenses, contractual arrangements and financing 7 .<br />

Key elements <strong>of</strong> the project<br />

According to the IFC-2015 report this process should cover the following:<br />

1. Optimum power plant design: A key project development challenge is to design a PV power plant that is optimally<br />

balanced in terms <strong>of</strong> cost and performance for a specific site.<br />

2. Project implementation: Achieving project completion on time and within budget with a power plant that operates<br />

efficiently and reliably, and generates the expected energy and revenue, is another key concern for developers.<br />

Key aspects <strong>of</strong> project implementation include: permits and licensing, selection and contracting <strong>of</strong> the Engineering,<br />

Procurement and Construction (EPC) Company, power plant construction, and operations and maintenance (O&M).<br />

3. Commercial and financing aspects: PV regulatory frameworks and specific types <strong>of</strong> incentives/support mechanisms for<br />

the development <strong>of</strong> PV projects, such as preferential tariffs and other direct and indirect financial supports, have an<br />

important impact on the financial viability <strong>of</strong> the project, as they affect the revenue stream.<br />

Power Purchase Agreements (PPAs) specify the terms under which the <strong>of</strong>f-taker purchases the power produced by the PV<br />

plant; this is the most important document to obtain financing.<br />

Description <strong>of</strong> the action<br />

The action summarised is to develop, finance, construct, operate and maintain 16 MW utility-scale solar PV power<br />

plants in <strong>Irbid</strong>.<br />

Establishing a power station using photovoltaic cells and using the best solar cell systems on a 500 dunum plot <strong>of</strong> land<br />

located in the village <strong>of</strong> Al-Khanasri.<br />

The village is characterized by high brightness and technical appropriateness for the establishment <strong>of</strong> this station, where the<br />

electricity will be transferred through national electricity grid, knowing that:<br />

A permit for the establishment <strong>of</strong> a 16 MW solar power plant has been obtained and approved by the Ministry <strong>of</strong><br />

Environment, Ministry <strong>of</strong> Energy and Mineral Resources, Ministry <strong>of</strong> Municipal Affairs, Electricity Regulatory Commission,<br />

and the Electric Power Company;<br />

The approval for transmitting the generated electricity through its grid has been obtained from the National Electric Power<br />

Industry;<br />

An actuarial study <strong>of</strong> the energy bill for 2017 has been made;<br />

The <strong>Municipality</strong> will train skilled personnel on the maintenance and continuity <strong>of</strong> the station.<br />

Before starting, it is essential for a successful project to have suitable expertise within the project team.<br />

This does not only apply to technical expertise but also to financial, legal and other relevant fields. Suitable expertise can<br />

be incorporated in a variety <strong>of</strong> ways: by hiring staff, using consultants or partnering with other organisations 8 .<br />

PROJECT DEVELOPMENT OVERVIEW -refer to Annex for more details<br />

STAGE 1 – CONCEPT DEVELOPMENT AND SITE IDENTIFICATION<br />

1. Identification <strong>of</strong> potential site(s)<br />

2. Funding <strong>of</strong> project development<br />

3. Development <strong>of</strong> rough technical concept<br />

STAGE 2 – PREFEASIBILITY STUDY<br />

1. Assessment <strong>of</strong> different technical options<br />

7<br />

http://www.ifc.org/wps/wcm/connect/f05d3e00498e0841bb6fbbe54d141794/IFC+Solar+Report_Web+_08+05.pdf?MOD=AJPERES<br />

8<br />

http://www.ifc.org/wps/wcm/connect/f05d3e00498e0841bb6fbbe54d141794/IFC+Solar+Report_Web+_08+05.pdf?MOD=AJPERES<br />

122

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