Yellow Door Energy secures $31.2m funding to construct solar plants 

Dubai-based Yellow Door Energy has secured $31.2m in funding for the construction and operation of eight solar photovoltaic (PV) plants in Jordan.
The loan is being provided by the European Bank for Reconstruction and Development (EBRD) and DEG.

According to Yellow Door Energy, the funding has been divided into three parts, with $10.6m being provided in local currency, complemented by a loan mobilised by the bank of up to $5m provided by the Global Environment Facility (GEF), and a parallel $15.6m senior loan in local currency from the DEG, the German development finance institution, and an equity contribution from Yellow Door Energy.

Spain is also providing results-based payments of up to $1.8m, as well as technical assistance together with the European Union.

The eight plants will together supply electricity generated to five private consumers, including Umniah – telecommunications industry, Carrefour supermarkets, Safeway supermarkets, and Taj Mall as well as Classic Fashion.

In total, 48.3MWp of renewable energy capacity will be added to Jordan’s power system, generating over 81GWh of renewable electricity annually during the lifetime of the project.

The plants are also expected to reduce carbon emissions by more than 49,000 tonnes per year.

The company said that the project has been designed under an innovative structure aggregating the risks inherent to the construction and operating of commercial solar projects. It is the largest portfolio of private-to-private renewable projects that involves the direct supply of private sector under Jordan’s Wheeling Regulations.

Additionally, the project has been registered with Verra’s Verified Carbon Standard (VCS), a leading global voluntary greenhouse gas (GHG) programme, and will benefit from support provided by Spain in the form of technical assistance to facilitate the establishment of a digitalised monitoring, reporting, and verification (D-MRV) system, and results-based payments to monetise its GHG emission reductions.

The emission savings will be monitored and reported through the advanced D-MRV system being developed by the EBRD that will enable efficient verification of climate impacts in an automated, transparent and robust way.

Meanwhile, it will showcase how digitalisation and automation could facilitate scaling-up of project innovations under existing and emerging carbon market mechanisms and results-based climate finance instruments.

Yellow Door Energy revealed that in the transaction HSBC acts as the offshore account bank and the offshore security agent.