Deals for $220m of finance for Jordan’s first large-scale renewable energy project have been signed this week.

The JWPC Tafila wind farm is operated as an independent power producer and has secured European and international support covering almost 77 per cent of the total cost of the project.

Agreements have been signed with a consortium of lenders comprising the International Finance Cooperation, the European Investment Bank, the Eksport Kredit Fonden, the OPEC Fund for International Development, FMO, and Europe Arab Bank.

The 117 MW wind farm will be located the Tafila governorate and will be equipped with 38 turbines.

It is intended to help cut Jordan’s current heavy dependency on energy imports and once fully developed it is expected to account for almost 10 per cent of the country's 2020 renewable energy target, which is 1200 MW.

EIB vice-president Philippe de Fontaine Vive said the project "provides a strong and green signal for the future in terms of technology, economic and energy development, and job opportunities”.

Eksport Kredit Fonden chief executive Anette Eberhard added that the wind farm was project “breaking new ground for wind farms in the Arab Mediterranean region, and this bodes well for the future”.

The global cogeneration equipment market is forecast to grow at a compound annual growth rate of 9.4 per cent by 2016, new analysis has found.

Growing electricity demand worldwide and increased use of cogeneration technology in the renewable energy sector were cited as reasons for the market growth in a report, The Global Cogeneration Equipment Market 2012-2016, from analysis firm TechNavio. However, the authors warned, fuel price volatility could pose a challenge for future growth.

A previous report from Global Industry Analysts predicted that the global cogeneration equipment market will reach US$15 billion by 2018, citing climbing energy prices, favourable policies and adoption in the renewable energy space. Developed regions such as the US and EU will lead the field, the report said, while growing demand for decentralised energy in developing countries also bodes well for cogeneration.

According to TechNavio, key segment vendors include Alstom Power, Caterpillar Inc, Kawasaki Heavy Industries and Siemens . 

Confidence in the global economy among power and utility bosses is at its highest in two years, according to consultants EY.

In its newly-published Capital Confidence Barometer: Power and Utilities, EY interviewed 203 global power and utility executives and 67 per cent of them believe the economy is improving, compared with 47 per cent six months ago.

Matt Rennie, global transactions Power & Utilities leader at EY, said this confidence was “reflected in a significant increase in deal volumes and more large deals”.

“Half of power and utility executives say growth is their top priority, up from 40 per cent a year ago. Ninety-three per cent consider credit either stable or improving – the highest levels in two years. We expect this alignment of core fundamentals for deal-making – economic confidence, credit availability and focus on growth – to favour higher transactional activity.”

And he added: “As utilities continue to reshape their portfolio and look to newer markets and services, we expect a more robust M&A climate into the next 12 months.”

According to EY, there was a 25 per cent increase in global power and utility deal volumes in the third quarter (Q3) of this year, compared to Q2, with a 67 per cent increase in Q3 global deal value compared to Q2.

EY asked power and utility bosses to name the top five countries outside of their own domestic market in which they were most likely to invest. Brazil came out top, followed by India, Canada, South Africa and Chile.

Other key findings of EY survey of power and utility bosses were: 48 per cent perceive global political instability to be the greatest growth barrier to their business; 59 per cent are confident of the credit availability in the market compared with 32 per cent a year ago; 51 per cent expect to allocate 25 per cent or more of their acquisition capital to BRIC countries in the next 12 months; and 49 per cent have greater focus on investing in emerging markets compared to a year ago.

Pip McCrostie, global vice-chair of EY’s Transaction Advisory Services, said: “Confidence in the global economy is at a two-year high. Companies have weathered a prolonged period of uncertainty during which time they strengthened their balance sheets and optimized their capital structures.

“Having warehoused cash for a number of years and with a ready access to credit, leading corporates are in a strong financial position to do deals – they now have more confidence to pull the trigger.”

But she stressed that “this does not mean we will see a return to boom-time deal-making. That was unsustainable – but so is the M&A recession we have experienced since 2009.

“For many companies, operational efficiencies and a focus on cost cutting can no longer meet growth mandates. As a result, the signs are that M&A will once again be a preferred route to achieve growth.”

To see the full report click here