EBRD Provides Up To $12.1 Million Loan To Kawar Energy To Support Renewable Energy Expansion In Jordan

The European Bank for Reconstruction and Development (EBRD) has announced a loan of up to US$12.1 million (€10.4 million) for Kawar Energy, one of Jordan’s leading renewable energy companies. The financing is aimed at strengthening the company’s financial position and supporting the continued expansion of its renewable energy portfolio across the country.

The investment will help Kawar Energy optimise its balance sheet and improve financial flexibility, allowing the company to pursue new renewable energy opportunities and accelerate the development of future projects. As Jordan continues to increase its reliance on clean energy sources, the funding is expected to play an important role in supporting the country’s ongoing energy transition.

Over the past decade, Jordan has made significant progress in expanding renewable energy generation, with solar and wind power accounting for an increasing share of the national electricity mix. By supporting a major local renewable energy developer, the EBRD’s investment will contribute to the growth of the sector, encourage greater competition, and ensure that local companies continue to play a central role in the country’s clean energy transformation.

In addition to the financing package, the EBRD will provide technical cooperation support focused on skills development and inclusive employment. This programme will introduce a certified apprenticeship scheme designed to help young professionals gain practical industry experience while creating stronger links between Kawar Energy and local universities, colleges, and technical training institutions.

The initiative is expected to contribute to workforce development and create new opportunities for young talent seeking careers in the renewable energy sector.The financing will also support Kawar Energy in strengthening its environmental, social, and governance (ESG) practices. As part of this effort, the company will implement a comprehensive ESG management system that includes assessments, policies, and procedures aligned with both national regulations and European Union standards.

The programme will also involve the development of a biodiversity action plan to ensure that future renewable energy projects comply with EBRD, EU, and Jordanian environmental and biodiversity requirements.Aida Sitdikova, Director of Sustainable Infrastructure for the EBRD in the Middle East and Africa, stated that the Bank is pleased to support Kawar Energy’s growth plans and renewable energy expansion in Jordan.

She noted that the investment reflects the EBRD’s broader commitment to promoting green transition, supporting private-sector development, and fostering sustainable economic growth across the country.Nabeel Abu Ata, Director of Strategy and Investment at Kawar Investment, the parent company of Kawar Energy, highlighted Jordan’s position as a regional leader in renewable energy development.

He said that the financing would strengthen the company’s ability to invest in new projects, expand its presence within the region, and continue delivering innovative energy solutions that contribute to both economic development and environmental sustainability. The latest investment further reinforces the EBRD’s long-standing commitment to Jordan. Since beginning operations in the country in 2012, the Bank has invested more than €2.2 billion across 84 projects spanning multiple sectors of the economy.

More than 70 percent of these investments have supported private-sector businesses. In addition to renewable energy and infrastructure projects, the EBRD has also provided substantial support to Jordan’s banking sector through loans, subordinated debt, and trade finance facilities that help micro, small, and medium-sized enterprises access much-needed financing.

By supporting Kawar Energy’s growth strategy, the EBRD is helping advance Jordan’s renewable energy ambitions while strengthening local industry, improving employment opportunities, and promoting higher environmental and governance standards across the sector.