Masdar Finances the Jordan Floating Solar Shbikat Project
In a significant step forward for renewable energy in the Middle East, UAE-based clean energy powerhouse Masdar has officially secured the financing for its pioneering 100-megawatt (MW) Shbikat floating solar photovoltaic (PV) project in Jordan. The deal, which closed in the final quarter of 2024, paves the way for the construction of one of the largest floating solar initiatives in the region.
Located on the Shbikat reservoir in the Zarqa Governorate, this innovative project marks a major milestone in Jordan’s pursuit of a sustainable energy future. Once operational, the plant is expected to generate approximately 200 gigawatt-hours (GWh) of clean energy annually, enough to power around 60,000 Jordanian homes and significantly reduce the nation’s carbon footprint.
A Strategic Financial Partnership for Jordan Floating Solar
The project’s financing structure highlights strong international confidence in Jordan’s renewable energy sector. The International Finance Corporation (IFC), a member of the World Bank Group, is providing a substantial debt financing package of approximately $80 million for climate mitigation.
This cornerstone investment is supplemented by support from local banks and export credit agencies, bringing the total project cost to an estimated $120-150 million. Masdar will provide the equity for the project, reinforcing its commitment to expanding its global clean energy portfolio, which now exceeds 20 GW.
Innovative Technology and Dual Benefits of Jordan Floating Solar
The Shbikat project moves beyond traditional ground-mounted solar farms by leveraging the surface of the reservoir. This floating solar design offers several key advantages:
- Enhanced Efficiency: The water’s natural cooling effect can boost the efficiency of the high-performance bifacial solar panels by up to 10-15% compared to land-based systems.
- Land Preservation: By utilizing the water’s surface, the project minimizes the use of valuable land resources.
- Water Conservation: In a water-scarce country like Jordan, this is a critical benefit. The floating panel arrays are expected to reduce water evaporation from the reservoir by 40-70%, preserving a precious resource.
This dual-benefit approach—generating clean energy while conserving water—provides a powerful model for sustainable development in arid regions.
Powering Jordan’s Clean Energy Goals with Floating Solar
The project is a cornerstone of Jordan’s national energy strategy, which aims to generate 50% of its electricity from renewable sources by 2030 and reduce its historical reliance on energy imports.
Under a 25-year Power Purchase Agreement (PPA), the Shbikat facility will sell its generated electricity to Jordan’s National Electric Power Company (NEPCO). The project secured this agreement through a competitive tariff of just $0.0236 per kilowatt-hour, demonstrating the economic viability of large-scale renewable projects.
Beyond its energy contributions, the project is set to deliver significant environmental and economic impacts. It will offset an estimated 120,000 tons of carbon dioxide emissions annually—the equivalent of removing 25,000 cars from the road. Furthermore, it is expected to create 300 jobs during the construction phase and an additional 20 permanent operational roles.
Project Timeline
With financing now secured, the project is moving forward on a clear timeline:
- Construction Start: Early 2025
- Commercial Operations: Targeted for late 2026
The successful financing of the Shbikat floating solar project is not just a win for Masdar and Jordan, but a beacon for the entire Middle East, showcasing how innovative technology and strategic partnerships can accelerate the transition to a cleaner, more sustainable energy future.
