Saudi Arabia-based Arab Petroleum Investments Corporation (APICORP) has signed a $50 million revolving construction facility with Yellow Door Energy Limited, a UAE-based sustainable energy company, to develop solar plants.

The company will develop solar photovoltaic (PV) plants in key markets including Jordan and Pakistan.

The first projects under the new funding will be in Jordan, where Yellow Door currently operates 79 megawatts (MW) of solar PV projects.

Dr Ahmed Ali Attiga, CEO of APICORP, said APICORP is one of Yellow Door Energy’s shareholders, demonstrating its commitment to the transition to renewable energy in the region, as well as its financing portfolio, which is 15 percent green.

He said: “These sorts of agreements are a key focus for us at a time when regional policymakers are prioritising distributed solar projects and demand for renewables has reached an all-time high across the MENA region and globally.

“We firmly believe that with the right mix of regulations, technology and financing, renewable energy has a massive potential to make inroads in the MENA region.”

APICORP forecasts that the MENA region will need to invest $237 billion in the power sector in the next five years, and $97 billion of the investment will be in the renewables sector.

(Writing by Imogen Lillywhite; editing by Daniel Luiz)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020