The revolving construction facility will support the development of the UAE-based firm’s solar PV plants in Jordan, Pakistan
Saudi Arabia’s Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, has inked a $50m (SAR187.5m) revolving construction facility with Yellow Door Energy (YDE), a UAE-based sustainable energy provider for businesses, to develop solar photovoltaic (PV) plants in the region, with a focus on projects in Jordan and Pakistan.
The first utilisation of the financing will be for solar PV projects in Jordan, where Yellow Door Energy is currently operating and building 79MW of solar PV projects across the country.
Currently, Yellow Door Energy has over 110MW of solar assets operating and under construction in the UAE, Jordan, and Pakistan, in addition to its recent expansions into Saudi Arabia, Bahrain, and Oman.
In 2019, APICORP along with a consortium of international and regional banks invested $65M (SAR243.8m) in Yellow Door Energy to scale up investments in solar energy and efficiency solutions in emerging markets.
“APICORP is one of Yellow Door Energy’s shareholders, and the revolving construction facility demonstrates our commitment to accelerate the sustainable energy transition in the region,” said Dr Ahmed Ali Attiga, CEO of APICORP.
Attiga added: “APICORP’s financing portfolio is now over 15% green and we are looking to continue to increase this as we move towards our strategic priorities for the energy transition.”
“These sorts of agreements are a key focus for us at a time when regional policymakers are prioritizing 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.”
Meanwhile, Jeremy Crane, CEO of Yellow Door Energy, said: “Yellow Door Energy is pleased to be working with APICORP again to propel our mission to provide low cost, reliable and sustainable energy solutions to businesses across MENA.
“This $50m revolving construction facility demonstrates the innovative thinking that makes APICORP and Yellow Door Energy leaders in their respective fields. The rapid growth of Yellow Door Energy needs flexible and affordable funding arrangements to support our international growth.”
Governments of various nations as well as policymakers have been shifting to alternate sources of energy including solar and other clean energy sources, as the demand for electric power and environmental concerns see a steady growth.
These renewable energy sources help reduce electricity costs, lead into long-term savings, and are more eco-friendly, thus helping reduce CO2 emissions.