Renewable Energy with Jordan Renewable Energy & Energy Efficiency Fund (JREEF)
Under the patronage of the Minister of Energy and Mineral Resources, H.E.Dr. Ibrahim Saif, and the Governor of the Central Bank of Jordan H.E.Dr. Ziad Fariz and the attendance of the chairman of the Association of Banks in Jordan and the General Mangers & CEOs of Bank al Etihad, Jordan Ahli Bank, Jordan Islamic Bank, Cairo Amman Bank and Capital Bank. Jordan Loan Guarantee Corp. participated in the agreement’s signing ceremony organized by Jordan Renewable Energy & Energy Efficiency Fund at the association on the 23rd June, 2016 to support renewable energy financing guaranteed by JLGC.
Jordan Renewable Energy and Energy Efficiency Fund (JREEEF) signed agreements with local banks and the Jordan Loan Guarantee Corporation (JLGC) to finance renewable energy projects.
The agreements will help speed up the implementation of projects supported by the JREEEF by providing the necessary funds to individuals and small- and medium-sized enterprises, mostly in the industrial and tourism sectors. They were supported by the Central Bank of Jordan (CBJ) which allows banks to use money allocated to the energy sector against low interest rates when funding programmes implemented by the fund.
Energy Minister Ibrahim Saif said the ministry, through the fund, seeks to reach all components of society and all business sectors.
The funding programme includes financing households to install solar heaters with up to JD500, installing electricity-generation systems using solar energy in houses with up to JD3,000 and installing electricity-generation systems for SMEs with up to JD350,000, Petra added.
The funding is presented without interest or commission, and the only requirement for borrowers is to repay the actual value of the loan within a maximum of six years for companies or 18 months for solar heater loans.
JLGC guarantees 70 per cent of the value of loans the banks present under the Renewable Energy Guarantee program to support housing and productive SMEs and increase their dependence on renewable energy as a sustainable source for power and to reduce the cost of subsidy presented by the government, the programme also seeks to increase the usage of energy saving tools.
Saif, in his capacity as JREEEF chairman, Fariz and directors general of the JLGC, Islamic International Arab Bank, Ittihad Bank, Ahli Bank, Jordan Islamic Bank, Cairo Amman Bank and Capital Bank all signed the agreement
JLGC Director General highlighted the importance of these agreements that represent a new tool for reaching citizens and improving their abilities to reduce electricity consumption by using solar energy.