Jordan - Renewable EnergyJordan - Renewable Energy
This sector is one of the best prospect industry sectors for Jordan. The National Energy Strategy includes ambitious targets to increase the contribution of renewable energy sources to the national energy supply.
Overview
Jordan does not have the natural resources of its neighbors and imports 90% of its energy and fuel requirements, comprising nearly 20% of the country’s GDP. The current use of renewable energy sources in Jordan is marginal. Potentials for generating power from renewable energy resources in the country are very promising, particularly solar and wind energy.
The Government of Jordan faces challenges in the energy sector. These include rising demand due to population growth, increased per capita consumption and electricity tariffs and cross-subsidies. In 2008, the Jordanian Government approved an $ 18bn energy strategic plan to guide the country until 2020. The plan covers all aspects of the energy sector from generation to transmission, and from conventional power to renewable and nuclear energy. The Government of Jordan is therefore actively seeking development of energy sources including the use of the country’s uranium, oil shale deposits, solar and wind power.
The energy strategic plan estimates the investment required in the power generation, transmission and distribution projects amounts to around $ 4bn for 2020. Jordan has been adopting the Independent Power Provider (IPP) approach to build new power stations. The government privatized Central Electricity Generation Company (CEGCO) and approved four IPP projects, which are developed by the U.S. Company AES and the Korean company KEPCO. Currently, the total generation capacity in Jordan is around 4 GW. Transmission and distribution, is led by the government-owned National Electric Power Company (NEPCO) and other distribution companies with distinct exclusive territories.
Energy Efficiency is one of the main components in Jordan’s energy strategic plan, which allocated a budget of around $ 150mn to this end. Besides the steps taken by NEPCO and its partners on the national level to become more efficient, the government is conducting awareness campaigns, capacity building and reducing tariffs on energy saving lighting. In addition, the Jordan National Building Council has released the Green Building Code guide to be used in real estate development projects as to become more environmentally friendly and energy efficient.
The renewable energy share of Jordan’s energy production will increase from one percent in 2007 to 10 percent by 2020 with estimated investments of $ 1.7bn. To achieve these goals, the Renewable Energy and Energy Efficiency Law was approved, and an energy efficiency fund established. Furthermore, a Feed-in-Tariff schedule for renewable energy resources was established, which is revised as needed. As of August 2016, 19 wind and solar projects were approved with a total generation capacity of over 700MW. A third round for renewable projects was released recently.
Jordan is not an oil and gas producing country; it only has one gas field in the north east of the country near the Iraqi border, Al-Risha, which produces around 15 million cubic feet, and one oil field in the Azraq area, Hamzah, which produces only 28 barrels a day. However, the Ministry of Energy and Mineral Resources (MEMR) is promoting petroleum blocks in different parts of the Kingdom in the hope of finding commercial quantities. Jordan is counting on its estimated 40 billion tons of oil shale reserves to ameliorate the energy supply demands. The Jordanian government has signed several oil shale exploration agreements with international companies such as Shell and Eseti Energia.
Jordan’s nuclear energy strategy aims to generate electricity through nuclear reactors for electrical load and water desalination. The Jordan Atomic Energy Commission (JAEC) is focused on purchasing between 200-700 megawatts of power from Small Modular Reactors (SMR) to come online between 2025-2030. JAEC would like to construct large-scale nuclear power plants in the long term after it shifted away from a plan to purchase two 1,000-megawatt (MW) nuclear power plants from Russian state-owned firm Rosatom.
In addition, the by-laws and regulations related to renewable energy projects for electricity generation have been issued by the Energy and Mineral Regulatory Commission providing the “Reference Price List” which includes the indicative prices for each type of renewable source.
The Reference Price List Record for the calculation of Electrical Energy purchase prices from Renewable Energy Sources Issued by the Council of Commissioners of (ERC) pursuant to Article (2/A) of the Renewable Energy and Energy Efficiency Law No. (13), for the Year 2012:
The mentioned Reference Pricelist Record will be used in order to evaluate the direct proposal for investment in the RE sources. The Reference Pricelist Record work as the Feed in Tariff but it is considered as a Ceiling Tariff and developers can compete under this upper limit.
In case the winning bidder from direct proposals installs a fully Jordanian origin Renewable Energy Facility, then an extra of (15%) on the tariff that has been submitted in advance, shall be awarded.
Sub-Sector Best Prospects
Solar Energy
Jordan is endowed with an abundance of solar energy, which is evident from the annual daily average solar irradiance on a horizontal surface range of between 5-7 kilowatt-hours/m2, one of the highest figures in the world. Currently, 716 megawatts of solar photovoltaic (PV) power are in operation, and an additional 636 megawatts of solar PV are under construction. Jordan is on pace to exceed 20 percent of generated electricity from renewable sources by 2020.
Wind
Jordan has significant wind energy resources that could be exploited for power generation. The country's Wind Atlas indicates that some areas in the northern and western regions of the country have wind speeds that exceed 7 meters/second. A 117-megawatt wind farm in Tafileh was implemented in 2015. Currently, 279 megawatts of wind power are in operation, and an additional 334 megawatts of wind power are under construction.
Waste to Energy
Jordan aims to generate 30-50 megawatts of power from waste-to-energy (WtE) projects by 2020. WtE projects in Jordan have primarily focused on landfill gas capture.
Opportunities
The best prospects include power generation, energy efficiency systems, nuclear energy technologies, solar and wind energy technologies, oil shale and mining equipment.
Despite the fuel challenge, the Jordanian government will continue to adopt the IPP concept for future power generation plants. With electricity demand increasing by 7% annually especially with the refugee situation, and more renewables entering the market, there are significant market opportunities for U.S. manufacturers and suppliers of turbines, switchgears, cables and all kinds of electric components.
Opportunities abound for U.S. companies in the renewable energy sector; with needs ranging from technology to equipment to consultancy services. The market is open for solar cells and panels, wind turbines and blades, generators, support structures, storage batteries and energy software management.
The transmission and distribution companies are working to upgrade their grids. The Discos conducted a smart grid/smart metering feasibility study funded by the U.S. Trade and Development Agency (USTDA). NEPCO is also looking for ways to increase its grid capacity to meet the extra power that will be generated by conventional and renewable energy projects which are under construction. There will be a need for smart grid systems, smart metering devices and load management systems as well.
Oil Shale is another opportunity for companies in Jordan. Through MEMR, Jordan is looking for new companies and technologies that can help expedite the exploration process to start producing oil. The market will need new drilling technologies, water boilers, consultancy services and project management. From direct investment to supplying equipment and services, the renewable energy market in Jordan is growing and developing fast. US companies are encouraged to enter the market sooner than later and start building business relationships with Jordanian counterparts.
Even without a 123 agreement on nuclear cooperation, U.S. companies can still participate in the consultancy part of the nuclear program. However, if an agreement were in place, the opportunities for U.S. companies would be excellent, particularly in safety, nuclear fuel cycle and waste management technologies.
Web Resources
Ministry of Energy and Mineral Resources: memr.gov.jo
National Electric Power Company: nepco.com.jo
EDAMA Association: edama.jo
Government Tenders Directorate (GTD): gtd.gov.jo
General Supplies Department (GSD): gsd.gov.jo
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Overview
Jordan does not have the natural resources of its neighbors and imports 90% of its energy and fuel requirements, comprising nearly 20% of the country’s GDP. The current use of renewable energy sources in Jordan is marginal. Potentials for generating power from renewable energy resources in the country are very promising, particularly solar and wind energy.
The Government of Jordan faces challenges in the energy sector. These include rising demand due to population growth, increased per capita consumption and electricity tariffs and cross-subsidies. In 2008, the Jordanian Government approved an $ 18bn energy strategic plan to guide the country until 2020. The plan covers all aspects of the energy sector from generation to transmission, and from conventional power to renewable and nuclear energy. The Government of Jordan is therefore actively seeking development of energy sources including the use of the country’s uranium, oil shale deposits, solar and wind power.
The energy strategic plan estimates the investment required in the power generation, transmission and distribution projects amounts to around $ 4bn for 2020. Jordan has been adopting the Independent Power Provider (IPP) approach to build new power stations. The government privatized Central Electricity Generation Company (CEGCO) and approved four IPP projects, which are developed by the U.S. Company AES and the Korean company KEPCO. Currently, the total generation capacity in Jordan is around 4 GW. Transmission and distribution, is led by the government-owned National Electric Power Company (NEPCO) and other distribution companies with distinct exclusive territories.
Energy Efficiency is one of the main components in Jordan’s energy strategic plan, which allocated a budget of around $ 150mn to this end. Besides the steps taken by NEPCO and its partners on the national level to become more efficient, the government is conducting awareness campaigns, capacity building and reducing tariffs on energy saving lighting. In addition, the Jordan National Building Council has released the Green Building Code guide to be used in real estate development projects as to become more environmentally friendly and energy efficient.
The renewable energy share of Jordan’s energy production will increase from one percent in 2007 to 10 percent by 2020 with estimated investments of $ 1.7bn. To achieve these goals, the Renewable Energy and Energy Efficiency Law was approved, and an energy efficiency fund established. Furthermore, a Feed-in-Tariff schedule for renewable energy resources was established, which is revised as needed. As of August 2016, 19 wind and solar projects were approved with a total generation capacity of over 700MW. A third round for renewable projects was released recently.
Jordan is not an oil and gas producing country; it only has one gas field in the north east of the country near the Iraqi border, Al-Risha, which produces around 15 million cubic feet, and one oil field in the Azraq area, Hamzah, which produces only 28 barrels a day. However, the Ministry of Energy and Mineral Resources (MEMR) is promoting petroleum blocks in different parts of the Kingdom in the hope of finding commercial quantities. Jordan is counting on its estimated 40 billion tons of oil shale reserves to ameliorate the energy supply demands. The Jordanian government has signed several oil shale exploration agreements with international companies such as Shell and Eseti Energia.
Jordan’s nuclear energy strategy aims to generate electricity through nuclear reactors for electrical load and water desalination. The Jordan Atomic Energy Commission (JAEC) is focused on purchasing between 200-700 megawatts of power from Small Modular Reactors (SMR) to come online between 2025-2030. JAEC would like to construct large-scale nuclear power plants in the long term after it shifted away from a plan to purchase two 1,000-megawatt (MW) nuclear power plants from Russian state-owned firm Rosatom.
In addition, the by-laws and regulations related to renewable energy projects for electricity generation have been issued by the Energy and Mineral Regulatory Commission providing the “Reference Price List” which includes the indicative prices for each type of renewable source.
The Reference Price List Record for the calculation of Electrical Energy purchase prices from Renewable Energy Sources Issued by the Council of Commissioners of (ERC) pursuant to Article (2/A) of the Renewable Energy and Energy Efficiency Law No. (13), for the Year 2012:
The mentioned Reference Pricelist Record will be used in order to evaluate the direct proposal for investment in the RE sources. The Reference Pricelist Record work as the Feed in Tariff but it is considered as a Ceiling Tariff and developers can compete under this upper limit.
In case the winning bidder from direct proposals installs a fully Jordanian origin Renewable Energy Facility, then an extra of (15%) on the tariff that has been submitted in advance, shall be awarded.
Sub-Sector Best Prospects
Solar Energy
Jordan is endowed with an abundance of solar energy, which is evident from the annual daily average solar irradiance on a horizontal surface range of between 5-7 kilowatt-hours/m2, one of the highest figures in the world. Currently, 716 megawatts of solar photovoltaic (PV) power are in operation, and an additional 636 megawatts of solar PV are under construction. Jordan is on pace to exceed 20 percent of generated electricity from renewable sources by 2020.
Wind
Jordan has significant wind energy resources that could be exploited for power generation. The country's Wind Atlas indicates that some areas in the northern and western regions of the country have wind speeds that exceed 7 meters/second. A 117-megawatt wind farm in Tafileh was implemented in 2015. Currently, 279 megawatts of wind power are in operation, and an additional 334 megawatts of wind power are under construction.
Waste to Energy
Jordan aims to generate 30-50 megawatts of power from waste-to-energy (WtE) projects by 2020. WtE projects in Jordan have primarily focused on landfill gas capture.
Opportunities
The best prospects include power generation, energy efficiency systems, nuclear energy technologies, solar and wind energy technologies, oil shale and mining equipment.
Despite the fuel challenge, the Jordanian government will continue to adopt the IPP concept for future power generation plants. With electricity demand increasing by 7% annually especially with the refugee situation, and more renewables entering the market, there are significant market opportunities for U.S. manufacturers and suppliers of turbines, switchgears, cables and all kinds of electric components.
Opportunities abound for U.S. companies in the renewable energy sector; with needs ranging from technology to equipment to consultancy services. The market is open for solar cells and panels, wind turbines and blades, generators, support structures, storage batteries and energy software management.
The transmission and distribution companies are working to upgrade their grids. The Discos conducted a smart grid/smart metering feasibility study funded by the U.S. Trade and Development Agency (USTDA). NEPCO is also looking for ways to increase its grid capacity to meet the extra power that will be generated by conventional and renewable energy projects which are under construction. There will be a need for smart grid systems, smart metering devices and load management systems as well.
Oil Shale is another opportunity for companies in Jordan. Through MEMR, Jordan is looking for new companies and technologies that can help expedite the exploration process to start producing oil. The market will need new drilling technologies, water boilers, consultancy services and project management. From direct investment to supplying equipment and services, the renewable energy market in Jordan is growing and developing fast. US companies are encouraged to enter the market sooner than later and start building business relationships with Jordanian counterparts.
Even without a 123 agreement on nuclear cooperation, U.S. companies can still participate in the consultancy part of the nuclear program. However, if an agreement were in place, the opportunities for U.S. companies would be excellent, particularly in safety, nuclear fuel cycle and waste management technologies.
Web Resources
Ministry of Energy and Mineral Resources: memr.gov.jo
National Electric Power Company: nepco.com.jo
EDAMA Association: edama.jo
Government Tenders Directorate (GTD): gtd.gov.jo
General Supplies Department (GSD): gsd.gov.jo
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.