The government of Jordan has approved power purchase agreements (PPAs) for 200MW of new solar plants in the country.

The seven individual projects will each be awarded 120 fils/kWh (US$0.17/kWh). The current cost of electricity is around US$0.25/kWh.

The country’s state news agency reported that the Council of Ministers had given the green light to the contracts, which will now be put to the seven firms that were awarded each project.

“This was the official approval of the PPAs, but PPAs were not signed,” explains Iyad Zawaideh, partner, clean energy and sustainability group, Eversheds, Jordan. “Developers are expected to receive communication from MEMR informing them officially of the approval and setting a time limit within which to sign.

“Until developers receive such official communication from MEMR we won't know when signing is expected,” said Zawaideh, pointing out that the tendering process for the first of three planned rounds of PV procurement had now taken three years.

Jordan struggles with electricity shortages and has experienced several major blackouts and brownouts in recent years. It is highly dependent on oil and gas imports.