In the energy industry, known for its inertia, technological change is often slow and gradual. However, with thorough technical and financial analysis new exiting opportunities can emerge. This joint paper with the National Electric Power Company (NEPCO) of Jordan and Wärtsilä Corporation describes one such a project.

Such a new opportunity arose in Jordan in the fall of 2010, when the NEPCO published a tender for an independent power producer (IPP) project, the third such project in the country (hence the name “IPP3″). What separated IPP3 from the two previous IPP projects was its size and technology: it included an option for a 600 MW power plant using tri-fuel reciprocating engines.

This paper is divided into two sections. The first section represents NEPCO’s needs and approach to the IPP3 project. An analysis of the power demand trends, existing portfolio, and fuel supply issues in Jordan provides background for the paper. The main steps in NEPCO’s analysis are later analysed in detail, leading to the conclusion that IPP3 should be approximately 600 MW and based on reciprocating engines. The second section of the paper represents Wärtsilä’s view, the equipment supplier and EPC consortium leader for IPP3 project. The initial phases of the process, that is, information exchange with NEPCO and various technological comparisons by various consultants are overviewed. The main steps in establishing relations and coming to an agreement with the developer, KEPCO/Mitsubishi, are considered. An overview of the environmental impact assessment and the consequent adoption of new emissions regulation in Jordan is provided. Finally, challenges of managing a large-scale project in Jordan are covered.

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Upma Koul - Contact

  Upma Koul

   Business Development Manager,
   Sales Middle East
   Wärtsilä Energy Solutions
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