Difference between revisions of "Jordan Energy Situation"

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{{CES Country
+
{{CES Country|CES Country Name=Jordan
|CES Country Name=Jordan
 
 
|CES Country Capital=Amman
 
|CES Country Capital=Amman
|CES Country Region=Middle East & North Africa
+
|CES Country Region Middle East and North Africa = Middle East & North Africa
 
|CES Country Coordinates=31.9500° N, 35.9333° E
 
|CES Country Coordinates=31.9500° N, 35.9333° E
 
}}
 
}}
 +
= Introduction<br/> =
  
 +
The Hashemite Kingdom of Jordan covers an area of 89,342 km² on the northern Arabian Peninsula. It borders with Syria, Israel, Iraq, Saudi Arabia and the West Bank (Palestine) as well as the Red Sea, with only 1.5% of its surface being arable land.<ref>GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.</ref> The climate is semi-dry in summer and cool in winter.<br/><br/>
  
 +
= Energy Situation<br/> =
  
= Energy Situation =
+
== Energy Data<br/> ==
  
Since 1967, the '''Jordan Electricity Authority (JEA)''' has been responsible for the generation and transmission of electrical energy throughout Jordan. In those regions whose power supplies were provided by neither of the two power distributors with a concession to supply end customers (JEPCo and IDECo), it was the JEA that also held responsibility for distributing power to end customers.
+
=== Primary Energy Supply<br/> ===
  
A lack of financial and administrative independence, autonomy and free-market orientation, as well as an inadequate tariff structure, led to a number of problems. Investment decisions were taken by a government commission and not in accordance with commercial criteria. Personnel policy was dictated by state targets, which did not meet the needs of the electricity sector. Moreover, the state’s tariff policy resulted in annual losses, because the electricity prices were too low to cover costs. At the same time, the tariff structure fostered considerable cross-subsidization between various customer groups. In turn, these subsidies sent out the wrong price signals and led to distortions in the electricity market.
+
Jordan has two main challenges regarding its energy situation: the growing energy demand on the one hand and the very limited domestic resources to fulfill this demand on the other hand. In 2012, the local production of energy – including crude oil, natural gas and renewable energy – was 272 ktoe (thousand tonnes of oil equivalent)<ref>http://www.iea.org/statistics/statisticssearch/report/?country=JORDAN&product=balances&year=2012</ref>, which was enough to cover only about 5% of the energy consumption. Including imports, the primary energy supply was 7,624 ktoe in 2012.<ref>http://www.iea.org/statistics/statisticssearch/report/?country=JORDAN&product=balances&year=2012</ref><br/>
 
 
The rapid growth in the demand for power every year meant large-scale investments were necessary to expand the number of power stations and the power grid. The level of these investments, however, would have been a very heavy burden for the Jordanian national budget alone.<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
== Renewable Energy ==
 
 
 
The use in Jordan of renewable energy sources has until now been marginal, accounting for a share of less than 1% of electricity generation. Potentials for generating power from renewable energy resources in the country are to be found primarily in the areas of wind and solar energy.
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
<br/>
 
 
 
=== Wind Energy<br/> ===
 
 
 
<u>'''Wind power potential'''</u>
 
 
 
Jordan has a number of regions that enjoy wind speeds suitable for generating electricity. Those regions with the greatest potential are located in the north and south of the country. Each region can be placed in one of three categories depending on the wind speeds that prevail: under 4 m/s, between 4 and 6 m/s and above 6 m/s. Particularly attractive locations in the third of these categories can be found in Hofa in the northwest of the country, in Fjeij near Shawbak (Shobak) and in Wadi Araba near Aqaba in the south.<br/>
 
 
 
<br/>
 
 
 
<u>'''Wind measurements'''</u>
 
 
 
A wind atlas, which was drawn up by the Danish Risø research centre in cooperation with the Jordanian authorities, has been available for Jordan since 1989. According to information provided by the Ministry of Energy and Mineral Resources, this wind atlas is in the process of being updated with results taken from recent measurements. The Jordan Meteorological Department operates fifteen permanently installed weather stations, whose measurements cover wind speeds and directions and are made available online.<br/>The '''Deutsche Gesellschaft für technische Zusammenarbeit (GTZ)''' has conducted its own wind measurements at two potential locations for wind farms (Aqaba and Shawbak) in Jordan and published the results of these studies at the end of 2001. Average wind speeds of more than 6.5 m/s at a height of 50 metres were measured at both of these sites. There has also been a CDM baseline study (conducted on behalf of GTZ) available since 2002 for a privately financed wind farm at Aqaba with a capacity of 25 MW. GTZ has also commissioned another study for the Shawbak location, which investigates the suitability of the facility planned for there with respect to the CDM. Here, too, the plans are for a privately financed 25-MW wind farm.<br/>A Swiss company, interwind, has been conducting wind measurements at fourteen locations in rural regions of Jordan since June 2003. These studies are being carried out on behalf of a Canadian company, RSW International, and are aimed at determining the extent to which wind power is suitable for providing decentralized power supplies in rural regions. 50 metre-high masts are being used to take these measurements. The results of wind measurements conducted in Tafila were published in 2004. Average wind speeds of only 4.4 m/s were measured here.<br/>
 
  
 
<br/>
 
<br/>
  
<u>'''Wind Farms'''</u><br/>
+
=== Consumption<br/> ===
  
So far, two wind farms have been built and come on stream in Jordan, both of which feed into the national grid. The first of these farms has a generating capacity of 320 kW (4 x 80 kW) and was constructed in 1998, in cooperation with a Danish company, in Ibrahimyya near Hofa, as a pilot project. The second was completed in 1996 in Hofa (financed with funds from the German Eldorado programme) and has a capacity of 1.2 MW (5 x 225 kW). Both wind farms are operated by CEGCo and together they generated around 3 GWh of electricity in 2005.<br/>
+
Final energy consumption in Jordan in 2012 added up to 5,013 ktoe. The share of the individual sectors is shown in table 1.<br/>
 
+
<p style="text-align: center;"><u>Table 1: Final energy consumption in Jordan in 2012 by sector (ktoe)</u><ref>http://www.iea.org/statistics/statisticssearch/report/?country=JORDAN&product=balances&year=2012</ref><br/></p>
<br/>
+
{| style="width: 100%;" border="1" cellspacing="1" cellpadding="1"
 
 
<u>'''Expansion Plans'''</u><br/>
 
 
 
The Ministry of Energy and Mineral Resources has been searching since 2002 for investors for the two highly promising locations in Fjeij near Shawbak and Wadi Araba near Aqaba. The intention is for these projects to be built and operated by independent power producers (IPPs) on the basis of BOO (Build-Own-Operate) contracts. A wind farm with a capacity of 25 to 30 MW to be fed into the interconnected power grid is to be built at each of these two locations. The level of capital expenditure is estimated at US$ 60-70 million. The projects were put out to public tender in 2005, but have so far attracted no potential investor.<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
=== Solar Energy ===
 
 
 
<u>'''Solar energy'''</u><br/>Jordan is a very sunny country. Average daily solar irradiation is 5.5 kWh/m2, while the sun shines approximately 2,900 hours per annum. Despite this, apart from for heating water for some households, solar energy is scarcely being used.
 
 
 
<br/>
 
 
 
<u>'''Photovoltaics'''</u><br/>According to the Jordanian Ministry of Environment, there is a multitude of potential applications – such as for supplying electricity to small settlements and tourist facilities, as well as in agriculture – in which, thanks to the high level of solar irradiation, PV systems could be employed as an economically viable alternative to connecting to the grid. Despite this, very little use is being made of photovoltaics in Jordan. Across the country, there are only around 100 PV systems installed as stand-alone systems in remote areas. These are used to power water pumps or supply electricity for telecommunication systems, schools and other facilities. All in all, these systems have a total capacity of 184 kWp.
 
 
 
<br/>
 
 
 
<u>'''Solar thermal energy'''</u><br/>Jordan has a fully developed market for solar water heaters. The majority of solar systems in use function according to the thermosyphon principle and are manufactured locally by more than 20 companies. A typical system comprises three solar panels with a surface area of three to four square meters and storage tanks with a capacity of between 150 and 1,000 liters. Roughly a quarter of Jordanian homes (around 220,000 units) are fitted out with a solar thermal water heating system. According to estimates of the Ministry of Energy and Mineral Resources, the total surface area of solar panels in use in the country amounts to approximately 1 million square meters, a large proportion of which was installed back in the 1980s. Around 10,000 square meters are being added every year. A national plan to further develop solar thermal energy – which has been formulated within the framework of the Euro-Mediterranean Partnership (MEDA Programme) – envisages an annual increase in new solar panels installed of 44,000 square meters. Included in this plan is the increased use in future of solar thermal energy to assist in the heating of buildings.<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
=== Hydropower ===
 
 
 
Jordan has no notable bodies of flowing water suitable for the construction of hydroelectric power stations. The only such plant is at the King Talal dam on the Az Zarqa River, with a capacity of 5 MW. Another hydroelectric generating facility employs a turbine to exploit the head of the cooling water taken from the sea to cool a thermal power station in Aqaba as it flows back to the sea. In 2005, these two stations together generated 57 GWh of electricity and were therefore the source of 0.59% of the electricity generated in the country as a whole.
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
=== Biogas ===
 
 
 
In cooperation with the United Nations Development Programme (UNDP), a project has been developed for utilising the methane gas that arises at the municipal waste disposal site in Amman. With the aid of the Global Environmental Facility (US$ 2.5 million) and the Danish development agency DANIDA (US$1.5 million), a biogas facility has been financed that captures the gases that arise at the landfill and uses a 1-MW generator to generate electricity for the interconnected power grid. The facility has been in service since 2000 and generates some 5 GWh of electricity annually. The installation is run by the Jordan Biogas Company, a joint stock company that is owned by the Central Electricity Generation Company (CEGCo) and the Greater Amman Municipality (GAM).<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
=== Biomass ===
 
 
 
Due to the arid climate, there is not a great deal of vegetation in Jordan. This obviously limits the potential use of vegetable biomass. The burning of vegetable biomass serves to a limited extent in rural regions for cooking and heating and is the main source of energy of the Bedouin in the desert. Great energy potential is to be found in household wastes (municipal solid wastes), which has an organic content of roughly 60%, and is estimated to add up to an annual total of 1.1 million tonnes. This equates to a daily per capita figure of between 0.35 and 0.95 kg of waste with a gross calorific value of 7-11 MJ/kg. The figures vary depending on the time of year and also differ between urban and rural regions.<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
=== Geothermal Energy ===
 
 
 
Geothermal resources in Jordan have been identified mainly in two regions. That said, both the sources on the eastern banks of the Jordan Valley and those on the plateau to the east of Madaba offer comparatively low temperatures below 100°C. This means they cannot be used to generate electricity and will continue to be used for thermal purposes only, such as for heating swimming pools and greenhouses.<br/>
 
<div>[[Jordan_Energy_Situation#Overview|►Go to Top]]</div><div><br/></div>
 
= Electricity Situation =
 
 
 
== The Electricity Grid<br/> ==
 
 
 
{| cellspacing="1" cellpadding="1" border="1" align="right" style="width: 200px"
 
|+ '''Level of development of Jordan’s transmission network; 2000, 2005'''
 
 
|-
 
|-
| Power line ratings<br/>
+
| colspan="2" | '''Sector<br/>'''
| 2000<br/>
+
| '''in ktoe'''<br/>
| 2005<br/>
+
| '''&nbsp;in %'''<br/>
 
|-
 
|-
| colspan="3" | km
+
| colspan="2" | Industry sector
 +
| 692
 +
| 13.80
 
|-
 
|-
| 400 kV<br/>
+
| colspan="2" | Transport sector
| 809<br/>
+
| 2,289
| 871<br/>
+
| 45.66
 
|-
 
|-
| 230 kV<br/>
+
| colspan="2" | Other sectors
| 17<br/>
+
| 1,903
| 17<br/>
+
| 37.96
 
|-
 
|-
| 132 kV<br/>
+
| of which
| 2200<br/>
+
| Residential
| 2512<br/>
+
| 1,200
 +
| 23.94
 
|-
 
|-
| 66 kV<br/>
+
| <br/>
| 17<br/>
+
| Commericial and public services
| 17<br/>
+
| 369
|}
+
| 7.36
 
 
The Jordanian national interconnected grid transmits electricity from the power stations to the distribution substations and transformer substations in the various regions of the kingdom via 400-kV and 132-kV power lines. The star topography of the grid has a clearly identifiable north-south axis, along which the only 400-kV power line runs, from Aqaba in the south via Amman and up to the Syrian border. The only area in which the grid has a ring-shaped configuration is around the capital city.
 
 
 
In the north, the power grid is connected to the Syrian grid by means of a 230-kV and a 400-kV power line. In the south, there is a 400-kV connection to the Egyptian grid. The interconnected grid feeds the local distribution systems via which almost the entire population of Jordan receives its electricity. The overall length of the installed high voltage power lines (132 kV and 400 kV) is around 3,400 km.
 
 
 
The following table shows the level of expansion of Jordan’s transmission network in 2000 and 2005.<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
== Installed Capacity ==
 
 
 
In 2005 the Jordanian interconnected power grid was supplied by an installed power station capacity of 1,873 MW. Compared with the previous year (1,643 MW), this was a capacity increase of 14%. The total power station capacity available nationwide, including the agreed import capacities, amounted to 2,019 MW in the same year. In addition to the power stations operated by the two state-dominated power producers, there are also a number of industrial enterprises that generate electricity in their own plants. Some of these also feed excess electricity into the Jordanian interconnected grid. Apart from these power sources, additional capacity can be called up when required from the Egyptian and Syrian grids. The four largest power stations are the station in Aqaba (656-MW steam power plant), the Hussein power station in Zarqa (396-MW steam power plant), the plant in Rehab (353-MW diesel-fired gas turbine) and a new combined-cycle power plant in Al-Risha.<br/>
 
 
 
<br/>
 
 
 
{| cellspacing="1" cellpadding="1" border="1" style="width: 100%"
 
|+ '''Installed power plant capacity and available capacity (incl. imports) in Jordan; 2001-2005<ref name="NEPCo">NEPCo</ref>'''
 
 
|-
 
|-
 
| <br/>
 
| <br/>
| 2001<br/>
+
| Agriculture/ Forestry
| 2002<br/>
+
| 168
| 2003<br/>
+
| 3.35
| 2004<br/>
 
| 2005<br/>
 
|-
 
| colspan="6" | MW<br/>
 
|-
 
| Steam power plants<br/>
 
| 1013<br/>
 
| 1013<br/>
 
| 1013<br/>
 
| 1013<br/>
 
| 1013<br/>
 
|-
 
| Diesel generators<br/>
 
| 43<br/>
 
| 43<br/>
 
| 43<br/>
 
| 43<br/>
 
| 43<br/>
 
|-
 
| Gas turbine (diesel)<br/>
 
| 353<br/>
 
| 353<br/>
 
| 353<br/>
 
| 353<br/>
 
| 353<br/>
 
|-
 
| Gas turbine (natural gas)<br/>
 
| 120<br/>
 
| 120<br/>
 
| 120<br/>
 
| 120<br/>
 
| 120<br/>
 
 
|-
 
|-
| Combined-cycle power station (CCPS)<br/>
 
| <br/>
 
| <br/>
 
| <br/>
 
 
| <br/>
 
| <br/>
| 300<br/>
+
| Non-specified
 +
| 166
 +
| 3.31
 
|-
 
|-
| Hydropower<br/>
+
| colspan="2" | Non-energy use
| 10<br/>
+
| 130
| 12<br/>
+
| 2.59
| 12<br/>
 
| 12<br/>
 
| 12<br/>
 
 
|-
 
|-
| Wind<br/>
+
| colspan="2" | Total
| 1.4<br/>
+
| 5,013
| 1.4<br/>
+
| 100
| 1.4<br/>
 
| 1.4<br/>
 
| 1.4<br/>
 
|-
 
| Biogas<br/>
 
| 1<br/>
 
| 1<br/>
 
| 1<br/>
 
| 1<br/>
 
| 1<br/>
 
|-
 
| Installed capacity (total)<br/>
 
| 1541<br/>
 
| 1643<br/>
 
| 1643<br/>
 
| 1643<br/>
 
| 1873<br/>
 
|-
 
| Available capacity, incl. imports<br/>
 
| n.a<br/>
 
| 1788<br/>
 
| 1788<br/>
 
| 1789<br/>
 
| 2019<br/>
 
 
|}
 
|}
  
[[Jordan_Energy_Situation#toc|►Go to Top]]
+
<br/>
  
<br/>
+
=== Import and Export<br/> ===
  
== Electricity Generation ==
+
The limited domestic resources meant that Jordan had to import 7,656 ktoe (thousand tonnes of oil equivalent) of energy to meet its demands. This means that the cost of the consumed energy amounts to as much as 17% of the GDP.<ref>http://www.memr.gov.jo/LinkClick.aspx?fileticket=B495BBqcNs4%3d&tabid=111</ref><br/>In the past, one of the main sources of the imported energy was Egypt, from where Jordan imported natural gas. However, there have been problems of the service being disrupted, which caused enormous problems with regards to the energy security in Jordan. Therefore, Jordan has increased efforts to diversify its energy supply.<br/>
  
Of the roughly 9,650 GWh of electricity generated in Jordan in 2005, 82.5% came from steam power plants. 6.7% was generated in gas-turbine power stations fired with natural gas and a further 3.5% came from diesel fired power stations and diesel generators. Just under 6% was generated at what is to date the country’s only combined-cycle power plant located in Al-Risha.<br/>Renewable energy sources account for only a minimal share of the electricity generated. In 2005, just 0.6% (57 GWh) of the electricity generated was sourced from hydropower. Biogas (5 GWh) and wind power (3 GWh) each accounted for less than 0.1%. The amount of electricity generated throughout the country by diesel generators (73 GWh or 0.7%) exceeds that generated from hydro, wind and biogas together (65 GWh).<br/>
+
=== Subsidies<br/> ===
  
<br/>
+
In 2012, the government of Jordan eliminated all fuel subsidies.<ref>http://www.economist.com/news/finance-and-economics/21639589-few-countries-are-taking-advantage-lower-oil-prices-cut-subsidies-pump</ref>&nbsp;In 2014, Jordan’s finance minister stated that electricity subsidies will be eliminated by 2017.<ref>http://www.aawsat.net/2014/05/article55332275/jordans-finance-minister-we-will-eliminate-electricity-subsidies-by-2017</ref><br/><br/>[[Jordan_Energy_Situation#toc|►Go to Top]]<br/>
  
{| cellspacing="1" cellpadding="1" border="1" style="width: 100%"
+
== Renewable Energy<br/> ==
|+ '''Electricity generation in Jordan according to type of generation; 2000-2005<ref name="NEPCo">NEPCo</ref>'''
 
|-
 
| <br/>
 
| 2001<br/>
 
| 2002<br/>
 
| 2003<br/>
 
| 2004<br/>
 
| 2005<br/>
 
|-
 
| colspan="6" | GWh<br/>
 
|-
 
| Electricity sector<br/>
 
| 7144<br/>
 
| 7630<br/>
 
| 7489<br/>
 
| 8471<br/>
 
| 9138<br/>
 
|-
 
|
 
*Steam power plants<br/>
 
  
| 6240<br/>
+
The use in Jordan of renewable energy sources has until now been marginal, accounting for a share of less than 1% of electricity generation. In 2012, of the 16.5 MW generated by renewable energy resources, 60.4% were hydropower, 21.1% biomass, 9.7% PV and 8.8% wind<ref name="RCREEE (2013): Jordan 2012. Renewable Energy Country Profile.">http://www.rcreee.org/sites/default/files/jordan_fact_sheet_re_print.pdf</ref>. Potentials for generating power from renewable energy resources in the country are to be found primarily in the areas of wind and solar energy.<br/>
| 6771<br/>
 
| 6430<br/>
 
| 7168<br/>
 
| 7524<br/>
 
|-
 
|
 
*Diesel generators<br/>
 
  
| 1<br/>
+
=== Wind Energy<br/> ===
| 3<br/>
 
| 1<br/>
 
| 1<br/>
 
| 2<br/>
 
|-
 
|
 
*Gas turbines (diesel)<br/>
 
  
| 83<br/>
+
Jordan has a number of regions that enjoy wind speeds suitable for generating electricity. Those regions with the greatest potential are located in the North and South of the country. A wind atlas, which was drawn up by the Danish Risø research centre in cooperation with the Jordanian authorities, has been available for Jordan since 1989. According to the Ministry of Energy and Mineral Resources, this wind atlas is in the process of being updated with results taken from recent measurements.<br/>So far, two wind farms have been built and connected to the grid in Jordan. One has a generating capacity of 320 kW (4 x 80 kW) and was constructed in 1998, in cooperation with a Danish company, in Ibrahimyya near Hofa, as a pilot project. The second was completed in 1996 in Hofa (financed with funds from the German Eldorado programme) and has a capacity of 1.2 MW (5 x 225 kW). They generated around 3 GWh of electricity in 2012<ref>http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=JORDAN&product=RenewablesandWaste</ref>. The share of electricity from wind is supposed to significantly increase. In 2013, a contract was signed with a consortium of Jordanian and international companies for the 117 MW Tafila wind farm. It is supposed to increase the country's total power capacity by 3%, with commercial operation envisioned to start by mid-2015<ref>http://www.memr.gov.jo/LinkClick.aspx?fileticket=B495BBqcNs4%3d&tabid=111</ref>.<br/>A second contract has been signed on an EPC (Engineering, Procurement and Construction) basis with the Spanish company Elecnor. This wind park in Maan, a city in the South of Jordan, is supposed to produce 33 x 2 MW and to start supplying energy by the end of 2015<ref>http://www.rechargenews.com/wind/1370753/Elecnor-Gamesa-in-Jordan-wind-joy</ref>.<br/>
| 115<br/>
 
| 262<br/>
 
| 464<br/>
 
| 341<br/>
 
|-
 
|
 
*Gas turbines (natural gas)<br/>
 
  
| 769<br/>
+
<br/>
| 680<br/>
 
| 746<br/>
 
| 776<br/>
 
| 648<br/>
 
|-
 
|
 
*CCPS<br/>
 
  
| <br/>
+
=== Solar Energy ===
| <br/>
 
| <br/>
 
| <br/>
 
| 558<br/>
 
|-
 
|
 
*Hydropower<br/>
 
  
| 43<br/>
+
In Jordan, natural conditions for solar are excellent, with an intensity of direct solar radiation with 5 to7 kWh/m².<ref>http://www.memr.gov.jo/LinkClick.aspx?fileticket=B495BBqcNs4%3d&tabid=111</ref> So far, solar PV has mainly been used for powering off-grid installations such as telecommunication towers, water pumping, and desalination of brackish water, as well as to provide dwellings in remote areas that are not connected to the electricity grid and where desalination had not been installed. Until the publication of the Renewable Energy Law in 2012, an estimated 236.4 kWp had been installed in Jordan.<ref>GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.</ref><br/>In late April 2014, around 3 to 4 MW of PV systems had been installed on a decentralized level, with around 5 MW more under construction, all connected to the distribution grid under the net-metering scheme. It was estimated that more than 400 registered installation companies exist in Jordan, although only around 10 companies are actively doing business in the field for on-grid markets in early 2014. In addition, 12 projects with 170 MWp were to be constructed under the first round of Direct Proposals for PPAs that was initiated in October 2011. By April 2014 none of these projects had been realized yet, but negotiations were in their final stage, with financial closure to be accomplished by autumn 2014.<ref>GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.</ref><br/>In addition, two tendered PV projects, one totaling 2 MWp, financed by Spain in the Azraq area, and another totaling 65 – 75 MWp in Quweirah (Aqaba), financed through a fund of Abu Dhabi, were to be evaluated by the Ministry for Energy and Mining Resources (MEMR) in 2014.<ref>GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.</ref><br/>
| 53<br/>
 
| 41<br/>
 
| 53<br/>
 
| 57<br/>
 
|-
 
|
 
*Wind<br/>
 
  
| 3<br/>
+
=== Hydropower ===
| 3<br/>
 
| 3<br/>
 
| 3<br/>
 
| 3<br/>
 
|-
 
|
 
*Biogas<br/>
 
  
| 5<br/>
+
Jordan has no notable bodies of flowing water suitable for the construction of hydroelectric power stations. The only such plant is at the King Talal dam on the Az Zarqa River, with a capacity of 5 MW. Another hydroelectric generating facility employs a turbine to exploit the head of the cooling water taken from the sea to cool a thermal power station in Aqaba as it flows back to the sea. In 2012, these two stations together generated 61 GWh of electricity and were therefore the source of 0.4% of the electricity generated in the country as a whole.<br/>
| 5<br/>
 
| 6<br/>
 
| 6<br/>
 
| 5<br/>
 
|-
 
| Industrial sector<br/>
 
| 405<br/>
 
| 502<br/>
 
| 505<br/>
 
| 496<br/>
 
| 516<br/>
 
|-
 
|
 
*Steam power plants<br/>
 
  
| 364<br/>
+
=== Biogas<br/> ===
| 434<br/>
 
| 428<br/>
 
| 422<br/>
 
| 445<br/>
 
|-
 
|
 
*Diesel generators<br/>
 
  
| 41<br/>
+
In cooperation with the United Nations Development Programme (UNDP), a project has been developed for utilising the methane gas that arises at the municipal waste disposal site in Amman. With the aid of the Global Environmental Facility (US$ 2.5 million) and the Danish development agency DANIDA (US$1.5 million), a biogas facility has been financed that captures the gases that arise at the landfill and uses a 1-MW generator to generate electricity for the interconnected power grid. The facility has been in service since 2000 and generates some 5 GWh of electricity annually. The installation is run by the Jordan Biogas Company, a joint stock company that is owned by the Central Electricity Generation Company (CEGCO) and the Greater Amman Municipality (GAM). Since 2001, the biogas sector has hardly been expanded; it produced about 6 GWh in 2012.<br/>
| 68<br/>
 
| 77<br/>
 
| 74<br/>
 
| 71<br/>
 
|-
 
| Total<br/>
 
| 7549<br/>
 
| 8132<br/>
 
| 7994<br/>
 
| 8967<br/>
 
| 9654<br/>
 
|}
 
  
 
<br/>
 
<br/>
  
Since the amount of electricity generated in Jordan has for some years been insufficient to cover the country’s needs, additional power is imported from Egypt and Syria. In 2005, 982 GWh was bought in, which was a good 9% of the electricity available in Jordan overall. Inside the country itself, electricity is generated by the two state-owned power producers, CEGCo and SEPGCo, by industrial self-generators and industrial enterprises.<br/>
+
=== Biomass ===
  
[[Jordan_Energy_Situation#toc|►Go to Top]]
+
Due to the arid climate, there is not a great deal of vegetation in Jordan. This obviously limits the potential use of vegetable biomass. The burning of vegetable biomass serves to a limited extent in rural regions for cooking and heating and is the main source of energy of the Bedouin in the desert. Great energy potential is to be found in household wastes (municipal solid wastes), which has an organic content of roughly 60%, and is estimated to add up to an annual total of 1.1 million tonnes. This equates to a daily per capita figure of between 0.35 and 0.95 kg of waste with a gross calorific value of 7-11 MJ/kg. The figures vary depending on the time of year and also differ between urban and rural regions.<br/>
  
<br/>
+
=== Geothermal Energy ===
  
== Electricity Prices ==
+
Geothermal resources in Jordan have been identified mainly in two regions. That said, both the sources on the eastern banks of the Jordan Valley and those on the plateau to the east of Madaba offer comparatively low temperatures below 100°C. This means they cannot be used to generate electricity and will continue to be used for thermal purposes only, such as for heating swimming pools and greenhouses.<br/>
 +
<div>[[Jordan_Energy_Situation#Overview|►Go to Top]]</div><div><br/></div>
 +
== Electricity<br/> ==
  
In June 2002, electricity tariffs in Jordan were raised slightly for the first time since May 1996. 2003 and 2004 saw further moderate price increases. The last adjustment of tariffs took place in July 2005. The price structure is divided roughly into two segments: major customers (large power users) and end customers. The major customers grouping – which, in addition to industrial enterprises, also includes local power providers – pay a demand charge for every kilowatt of their maximum consumption. On top of this is a kilowatt-hour rate, which is lower at night than during the day.<br/>
+
=== Installed Capacity and Generation<br/> ===
  
The tariffs for end customers make a distinction between commercial customers and private households. The price of electricity for households rises progressively with the amount of electricity consumed. The two groups of end customers pay two different minimum monthly payments: for households 1.10 euro, for commercial customers 1.37 euro.
+
In 2013, the Jordanian interconnected power grid was supplied by an installed power station capacity of 3,193 MW.<ref name="NEPCO (2014): Annual report 2013.">http://www.nepco.com.jo/store/docs/web/2013_en.pdf </ref> The generated and imported electrical energy amounted to 17,643 GWh in the same year. The available capacity development by type of generation since 2010 is outlined in table 2.<br/>
 
+
<p style="text-align: center;"><u>Table 2: Available capacity development by type of generation (in MW) 2010-2013</u><ref name="NEPCO (2014): Annual report 2013.">http://www.nepco.com.jo/store/docs/web/2013_en.pdf </ref><br/></p>
<br/>
+
{| style="width: 100%;" border="1" cellspacing="1" cellpadding="1"
 
 
{| cellspacing="1" cellpadding="1" border="1" style="width: 100%"
 
|+ '''Development of electricity prices in Jordan; 1996-2005; prices in euros<ref name="NEPCo">NEPCo</ref>'''
 
 
|-
 
|-
 
| <br/>
 
| <br/>
| 1996-2002<br/>
+
| '''2010<br/>'''
| 2002-2003<br/>
+
| '''2011'''
| since 2005<br/>
+
| '''2012'''
 +
| '''2013'''
 +
|-
 +
| style="text-align: right;" colspan="5" | '''MW'''<br/>
 +
|-
 +
| Steam<br/>
 +
| 925
 +
| 925
 +
| 925
 +
| 791
 
|-
 
|-
| colspan="4" | '''Major customers'''<br/>
+
| Gas turbine (diesel)
 +
| 149
 +
| 134
 +
| 134
 +
| 27
 
|-
 
|-
| colspan="4" | Power providers<br/>
+
| Gas turbine (natural gas)
 +
| 600
 +
| 499
 +
| 499
 +
| 621
 
|-
 
|-
|  
+
| Combined cycle
*Demand charge (€/kW/month)<br/>
+
| 1,317
 
+
| 1,737<br/>
| 2.63<br/>
+
| 1,737
| 2.63<br/>
+
| 1,737
| 2.63<br/>
 
 
|-
 
|-
|  
+
| Hydro<br/>
*Day-time tariff (€/kWh)<br/>
+
| 12
 
+
| 12
| 0.032<br/>
+
| 12
| 0.034<br/>
+
| 12
| 0.037<br/>
 
 
|-
 
|-
|  
+
| Wind<br/>
*Night (off-peak) rate (€/kWh)<br/>
+
| 1.4
 
+
| 1.4
| 0.021<br/>
+
| 1.4
| 0.023<br/>
+
| 1.4
| 0.026<br/>
 
 
|-
 
|-
| colspan="4" | Large-scale industry<br/>
+
| Biogas
 +
| 3.5
 +
| 3.5
 +
| 3.5
 +
| 3.5
 
|-
 
|-
|  
+
| colspan="5" | <br/>
*Demand charge (€/kW/month)<br/>
 
 
 
| 2.63<br/>
 
| 2.63<br/>
 
| 2.63<br/>
 
 
|-
 
|-
|  
+
| Total
*Day-time tariff (€/kWh)<br/>
+
| 3,008
 +
| 3,312
 +
| 3,312
 +
| 3,193
 +
|}
  
| 0.052<br/>
+
In addition to the power stations operated by the public utilities, there are also a number of industrial enterprises that generate electricity in their own plants. Some of these also feed excess electricity into the Jordanian interconnected grid. Since the amount of electricity generated in Jordan has for some years been insufficient to cover the country’s needs, additional power used to be imported from Egypt and Syria. However, due to the circumstances in the region, import has been stalled completely (Syria, since 2012) or reduced (Egypt).<ref name="NEPCO (2014): Annual report 2013.">http://www.nepco.com.jo/store/docs/web/2013_en.pdf </ref><br/>
| 0.053<br/>
 
| 0.053<br/>
 
|-
 
|
 
*Night (off-peak) rate (€/kWh)<br/>
 
  
| 0.035<br/>
+
=== Consumption<br/> ===
| 0.035<br/>
 
| 0.035<br/>
 
|-
 
| colspan="4" |
 
'''End customers (excl. major customers)'''<br/>
 
  
 +
The main consumer of electricity in Jordan is the domestic sector (including government buildings) which accounts for 43% of the total consumption, followed by the industrial sector (24%). Overall consumption has been steadily increasing in the recent years. The development of the electricity consumption per sector is outlined in table 3.<br/>
 +
<p style="text-align: center;"><u>Table 3: Electricity consumption by sector (in GWh) 2008-2013</u><ref name="NEPCO (2014): Annual report 2013.">http://www.nepco.com.jo/store/docs/web/2013_en.pdf </ref><br/></p>
 +
{| style="width: 100%;" border="1" cellspacing="1" cellpadding="1"
 
|-
 
|-
| colspan="4" | Private households<br/>
+
| '''Sector<br/>'''
 +
| '''2008'''
 +
| '''2009'''
 +
| '''2010'''
 +
| '''2011'''
 +
| '''2012'''
 +
| '''2013'''
 
|-
 
|-
|  
+
| style="text-align: right;" colspan="7" | '''GWh'''<br/>
*1-160 kWh (€/kWh)<br/>
 
 
 
| 0.033<br/>
 
| 0.034<br/>
 
| 0.034<br/>
 
 
|-
 
|-
|  
+
| Domestic (incl. government buildings)
*161-300 kWh (€/kWh)<br/>
+
| 4,459
 
+
| 4,888
| 0.057<br/>
+
| 5,225
| 0.060<br/>
+
| 5,667
| 0.065<br/>
+
| 6,126
|-
+
| 2,265
|  
 
*301-500 kWh (€/kWh)<br/>
 
 
 
| 0.066<br/>
 
| 0.070<br/>
 
| 0.073<br/>
 
 
|-
 
|-
|  
+
| Industrial
*Over 500 kWh (€/kWh)<br/>
+
| 3,128
 
+
| 3,006
| 0.082<br/>
+
| 3,262
| 0.088<br/>
+
| 3,486
| 0.090<br/>
+
| 3,461
 +
| 3,517
 
|-
 
|-
| Trades and crafts<br/>
+
| Commercial
| 0.066<br/>
+
| 1,925
| 0.068<br/>
+
| 1,980
| 0.069<br/>
+
| 2,187
 +
| 2,173
 +
| 2,427
 +
| 2,414
 
|-
 
|-
| Light industry<br/>
+
| Water Pumping
| 0.040<br/>
+
| 1,713
| 0.042<br/>
+
| 1,772
| 0.045<br/>
+
| 1,868
 +
| 1,899
 +
| 1,955
 +
| 2,076
 
|-
 
|-
| Hotels<br/>
+
| Street Lighting
| 0.066<br/>
+
| 284
| 0.066<br/>
+
| 310
| 0.066<br/>
+
| 315
 +
| 310
 +
| 305
 +
| 291
 
|-
 
|-
| Water pumps<br/>
+
| colspan="7" | <br/>
| 0.037<br/>
 
| 0.042<br/>
 
| 0.044<br/>
 
 
|-
 
|-
| Street lighting<br/>
+
| Total
| 0.022<br/>
+
| 11,509
| 0.027<br/>
+
| 11,956
| 0.033<br/>
+
| 12,857
 +
| 13,535
 +
| 14,277
 +
| 14,564
 
|}
 
|}
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
  
 
<br/>
 
<br/>
  
== Rural Electrification<br/> ==
+
=== Grid<br/> ===
  
The well developed supply network in the country also supplies a large proportion of the population in rural regions with electricity. There are now only a few remote settlements that still do not enjoy the benefits of a grid connection.<br/>The'''Rural Electrification Project (REP) '''is a department of the Ministry of Energy and Mineral Resources and was set up in 1992. At that time, the Government had decided to introduce an additional charge of 0.11 euro cents (1 fils) on every kilowatt-hour consumed. In 1997, this charge was increased to 0.22 euro cents (2 fils). The money levied through this charge is being used for rural electrification.<br/>A programme aimed at promoting the provision of power to those people who live in remote regions far from the national power grid with the aid of PV systems has been running since 2002. In particular, low-income population groups living in the countryside are to be given access to electricity through this programme. Within the scope of this programme, nine PV systems (solar home systems) have been installed in a small village, which are used to provide lighting and power radios and televisions in the households taking part.<br/>
+
The Jordanian national interconnected grid transmits electricity from the power stations to the distribution substations and transformer substations in the various regions of the kingdom via 400-kV and 132-kV power lines. The star topography of the grid has a clearly identifiable north-south axis, along which the only 400-kV power line runs, from Aqaba in the south via Amman and up to the Syrian border. The only area in which the grid has a ring-shaped configuration is around the capital city. In the north, the power grid is connected to the Syrian grid by means of a 230-kV and a 400-kV power line. In the south, there is a 400-kV connection to the Egyptian grid. The interconnected grid feeds the local distribution systems via which almost the entire population of Jordan receives its electricity. The overall length of the installed high voltage power lines (132 kV and 400 kV) is around 3,400 km. The National Electric Power Company (NEPCO) is planning to develop a new high voltage transmission network, called “green corridor”, running South-North in order to reinforce the electric grid. The project was initially planned for 2015, but due to delays it seems that it will be not be operational before 2018.<ref>http://www.invest-export.irisnet.be/documents/16349/1140680/2014+-Jordan+-+Renewable+energy+prospects.pdf/eb6cb1ff-a6d9-4d7c-804f-13b68877d86d</ref><br/>
  
[[Jordan_Energy_Situation#toc|►Go to Top]]
+
=== Electricity Prices<br/> ===
  
<br/>
+
The electricity tariff structure in Jordan takes into account social aspects as well as the economic capacities of consumers. In 2014, the electricity prices for the end consumer ranged from JD 0.033 per kWh for small residential consumers with less than 150 kWh per month demand to JD 0.292 per kWh for the banking sector. In 2012, the generation and distribution costs were JD 0.146 per kWh, whereas the average selling price was JD 0.0636 per kWh. The difference in price had to be covered by the state-owned National Electric Power Company (NEPCO), thereby creating a substantial deficit of JD 2.3 billion by the end of 2012. In order to reduce the losses, a National Strategic Plan has been developed. It foresees the adjustment of electricity tariffs and other measures to enhance the efficiency of the electricity system. By the end of 2017, NEPCO is supposed to be able to cover its costs. The plan prescribes the electricity price development for different consumer categories until the year 2017. Nevertheless, electricity is subsidized for many categories, e.g. for consumers with low electricity consumption.<ref>GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.</ref><br/>The electricity tariff schedule for the period from 2013 to 2017 is available here: [http://www.memr.gov.jo/LinkClick.aspx?fileticket=PHxs463H8U0=&tabid=255 http://www.memr.gov.jo/LinkClick.aspx?fileticket=PHxs463H8U0=&tabid=255]<br/>[[Jordan_Energy_Situation#toc|►Go to Top]]<br/><br/>
 
 
== Electricity Market Structure ==
 
 
 
In view of the annually increasing demand for electricity and the central role of electricity supply for economic development as a whole, the Jordanian Government decided back in 1997 to embark on a restructuring of the sector. The main objective of this reform was to increase the efficiency and performance capability of Jordan’s electricity sector, a goal that was to be achieved by among other things opening up the country’s electricity market and enabling private investors to participate in the expansion of the power sector. In the course of these measures, the power generation, transmission and distribution segments went through a process of unbundling. In place of the state authority, JEA, which until then had borne responsibility at all levels, separate businesses were formed, each of which operates in just one area.
 
 
 
[[Jordan_Energy_Situation#Overview|►Go to Top]]<br/>
 
 
 
=== Power Generating Companies<br/> ===
 
 
 
<u>'''Central Electricity Generating Company (CEGCo)'''</u><br/>This joint stock company, which has existed in its present form since 1999, operates the majority of Jordan’s power stations. In 2005, 94% of the electricity generated inside Jordan came from CEGCo power stations. All of the electricity the company generates is sold to NEPCo, which, alongside the Jordanian Government that itself holds 75% of CEGCo’s shares, is the only other shareholder of the national power provider.<br/>
 
 
 
<u>'''Samra Electric Power Generating Company (SEPGCo)'''</u><br/>This joint stock company was founded in 2003 and is 100% owned by the Jordanian state. It is responsible for running the combined-cycle power station in Al-Risha. In 2005, the Ministry of Energy and Mineral Resources awarded SEPGCo the contact to build another 100-MW steam power plant. The Jordanian Government is planning to privatise the company as part of an international tendering process.<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
  
 
<br/>
 
<br/>
  
=== Power Transmission Companies<br/> ===
+
= Energy Policy<br/> =
  
<u>'''National Electric Power Company (NEPCo)'''</u><br/>The national power company, '''National Electric Power Company (NEPCo)''', is a joint stock corporation whose capital is completely in the hands of the Jordanian state. It is responsible for expanding and operating the nationwide transmission network. NEPCo purchases the electricity from the producers as the sole buyer, in order to sell it on to the operators of the distribution networks. The company operates a national load-dispatching centre to coordinate the demand for and the supply of power.<br/>
+
== General Information<br/> ==
  
[[Jordan_Energy_Situation#toc|►Go to Top]]
+
More than 96% of energy resources have to be imported. That is why, from an economic point of view, it is important for NEPCO as well as for consumers paying high prices for energy to look for cheaper alternatives of electricity supply. This is especially true since the overall political situation in the region remains unstable, making the option of cheap gas or electricity imports less probable in the near to mid-range future. Alternative energy sources such as shale oil or nuclear power require at least several years of exploration and development activities before deployment, and the LNG terminal for gas in Aqaba is still under construction. A growing population and the corresponding increase in energy consumption require solutions that can quickly generate additional electricity capacities.<ref>GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.</ref><br/>[[Jordan_Energy_Situation#toc|►Go to Top]]<br/><br/><br/>
  
<br/>
+
== Renewable Energy Policy<br/> ==
  
=== Distribution Companies ===
+
As a general rule, the issuing of licenses is regulated by the '''General Electricity Law''', Article 28 onwards. In conformance with this law, the regulatory authority issues licenses to firms that wish to generate, distribute or sell electricity. Generating plants with a capacity of up to one megawatt are allowed to operate without a license. Local supply networks with a capacity of max. 100 kW can be operated without a license, in the same way as power plants that are used solely to generate electricity for self-consumption. Power supply companies or middlemen who want to purchase electricity from a power station with a capacity greater than 5 MW may conclude appropriate supply contracts only after competing in a public tendering process (Article 35). These rules apply equally to conventional thermal power stations and stations that generate electricity from renewable energy sources.<br/>To develop renewable energy capacities, a number of support mechanism have been introduced. For example, under the Jordanian '''net-metering scheme''', the excess electricity fed into the grid is credited for later consumption. This excess electricity that is credited can be used to offset electricity used at other times, when there is little or no PV electricity production (e.g. at night). The legal basis for net-metering is the 2012 '''Renewable Energy and Energy Efficiency Law No. 13 (REEL)'''. The REEL as well as bylaws enable Independent Power Producers (IPP) to provide electricity from renewable sources to NEPCO within long-term Power Purchase Agreements (PPA). Private investors may also invest in their own PV system up to 5 MWp to directly consume the electricity produced and offset it against their entire demand within a net-metering scheme. The REEL even allows the generation of electricity at a different site than where the actual consumer is located – so-called energy wheeling. As a result, there are two promising business cases that enable investments in renewable energies: Direct Proposals for PPAs under consecutive rounds of “expressions of interest” and net-metering.<br/>The Government has being attempting for a long time now to conclude contracts with '''Independent Power Producers (IPP)''' with the aim of expanding the number of power stations in Jordan’s electricity generating system. Initially, it made only slow progress. A number of potential projects were abandoned. Now, IPP projects with a total generation capacity of 740 MW (conventional energy) have been implemented. The IPP model is also used for renewable energy plants. However, by June 2014, no renewable energy plants had been constructed under the first round of the tender scheme and the following two rounds of direct proposals. In the first round, initiated in 2011, PPAs covering 170 MWp of solar PV were initially signed between 12 IPP companies or consortia and the Ministry for Energy and Mining Resources (MEMR). Until April 2014, these were in the process of financial negotiations between investors and the potential IPPs. Those systems were due to be constructed and connected to National Electric Power Company’s (NEPCO) transmission lines within the next 16 months. In the following two rounds of direct proposals, another 400 MWp of solar PV systems had been tendered for direct proposals, including four 50 MW plants and two 100 MW plants.<ref>GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.</ref><br/>In 2007, Jordan updated its '''[http://www.memr.gov.jo/Portals/0/energystrategy.pdf Master Strategy for Energy]''' for the period of 2007 to 2020, which had initially been drafted in 2004. The strategy aims at reducing energy imports through diversification of the energy mix by using local resources such as shale oil, nuclear power and renewable energies. Although at the moment the strategy still serves as a guideline for renewable energies, its assumptions can be considered to be outdated, especially since it assumes that nuclear and shale oil will cover a considerable share of Jordan’s energy demand by 2015 and 2020.<ref>GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.</ref><br/><br/>
  
<u>'''Jordan Electric Power Company (JEPCo)'''</u>
+
== Energy Efficiency Policy<br/> ==
  
In 2005, the distribution company supplied power to around 739,000 end customers in the four governorates Amman (capital), Zarqa, Madaba and Balqa. This added up to 4,793 GWh or 55% of the electricity consumed nationwide. The company was founded in 1947 as a joint stock company. The 50-year concession to generate and distribute electricity for the above-mentioned governorates, on which JEPCo’s business is based, is due to expire in 2012.<br/>
+
In the [http://www.memr.gov.jo/Portals/0/energystrategy.pdf Master Strategy for Energy] in Jordan for the period of 2007 to 2020 there are also several recommendation concerning energy efficiency. These include the implementation of energy consumption efficiency programs in different sectors, broad awareness campaigns on the energy consumption rationalization, tax exemptions for energy saving equipment, thermal insulation of buildings and a national award in the energy consumption rationalization domain.<br/>Jordan also introduced a [http://www.rcreee.org/sites/default/files/plans_jordanian_neeap_summery_2013.pdf National Energy Efficiency Action Plan (NEEAP)] which is in the process of adaptation. The NEEAP gives a national indicative target of 20% energy reductions by 2020 and six sectorial targets.<br/>[[Jordan_Energy_Situation#toc|►Go to Top]]<br/>
  
<u>'''Irbid District Electricity Company (IDECo)'''</u><br/>In 2005, this distribution company supplied power to around 251,000 customers in the four governorates Irbid, Mafraq, Jerash and Ajlun in the north of the country (1,210 GWh). Around 14% of the electricity consumed in Jordan was distributed to end customers via IDECo’s network. IDECo’s concession runs out sooner than JEPCo’s, in 2011. IDECo was established in 1961 as a privately owned power supply (distribution) company. So far, NEPCo still holds 55 % of the shares in the company, but it wants to sell these as part of a further phase of privatisation of the power supply sector.<br/>
+
= Key Actors in the Energy Sector<br/> =
  
<u>'''Electricity Distribution Company (EDCo)'''</u><br/>In those regions of the country for which neither JEPCo nor IDECo have a concession, end customers are supplied with their electricity by EDCo. In 2005 this amounted to 139,000 customers, receiving 1,427GWh or just over 16% of Jordan’s total consumption. EDCo came into being as a power supply company when the Jordanian electricity authority began to be unbundled. The company is state owned and is intended to be sold off within the scope of privatisation of the sector.
+
== Governmental Bodies and Agencies<br/> ==
  
[[Jordan_Energy_Situation#toc|►Go to Top]]
+
The '''Ministry of Energy and Mineral Resources (MEMR)''' lays down the goals and political framework conditions for development of the energy market. Its core task is to facilitate continuing development of the country by ensuring adequate availability of energy. This is meant to be brought about with as little expenditure as possible, but while maintaining high standards. To this end, the ministry also intends inviting foreign investors in the fields of power generation, oil production and the development of other locally available sources of energy.<br/>In 2014, the Electricity Regulatory Commission, the Jordan Nuclear Regulatory Commission and the Natural Resources Authority (NRA) were merged to form the '''Energy and Minerals Regulatory Commission (EMRC)'''. The EMRC was built in accordance with Law No. 17 which regards the restructuring of institutions and governmental organization. It is an independent institution which is responsible for the regulatory environment of the electricity sector. To this end, it fixes the electricity tariffs and the charges for services related to the sale of electricity. The EMRC also awards licenses to power providers and distributors and monitors compliance with the terms of the licenses. Furthermore, the commission has been set up to arbitrate between operators and electricity customers in order to find solutions that are as amicable as possible. It also has the job of mediating between power generators or operators of distribution networks in the event of disagreement<br/>
  
= Political Framework Conditions<br/> =
+
== Utilities<br/> ==
  
== Deregulation<br/> ==
+
The national power company, '''National Electric Power Company (NEPCO)''', is a joint stock corporation whose capital is completely in the hands of the Jordanian state. It is responsible for expanding and operating the nationwide transmission network. NEPCO purchases the electricity from the producers as the sole buyer, in order to sell it on to the operators of the distribution networks. The company operates a national load-dispatching centre to coordinate the demand for and the supply of power. Its unique position as single buyer and single seller and the subsidies for electricity led to massive budgetary deficiencies. In order to reduce the losses, a National Strategic Plan has been developed. It foresees the adjustment of electricity tariffs and other measures to enhance the efficiency of the electricity system. By the end of 2017, NEPCO is supposed to be able to cover its costs.<br/>Three private companies act as Distribution System Operators (DSO) in Jordan: The '''Jordanian Electric Power Company (JEPCO) '''is responsible for distributing electrical energy for about 66% of the country’s total consumers. It serves 5,000 km2 (Amman, Zarqa, Madaba and Al-Balqaa) and is made up of more than 5,600 main stations and substations with a total of 19,000 kilometers of underground and overhead lines.<br/>The '''Electricity Distribution Company (EDCO)''' was established in 1997 and is now responsible for distributing electrical energy to the southern part of the Kingdom, including Aqaba, Maan, Karak, Tafila, Jordan Valley, Azraq, Safawi, Royweshed, and Reshah. The '''Irbid District Electricity Company (IDECO)''' was established in 1957 and is now responsible for distributing electrical energy to the northern part of the Kingdom, which includes Irbid, Jerash, Mafraq and Ajloun.<br/>[[Jordan_Energy_Situation#toc|►Go to Top]]<br/>
  
In the mid-1990s, the Government decided to embark on a restructuring of the electricity sector, a process that was to be conducted in several stages, which have not yet been completed. <u>This restructuring has the following aims:</u><br/>
+
== Others<br/> ==
*Efficient and reliable electricity generation, which supports general long-term development of the country by providing electricity at affordable rates.<br/>
 
*The electricity sector is to no longer burden the national budget through annual losses and is to provide or raise the capital necessary to maintain, develop and expand plants and networks itself.<br/>
 
*Operation and regulation of the electricity sector are to be reorganised in such a way that competition is fostered and private investors can be attracted into entering the Jordanian power market.
 
  
<u>To achieve these aims, the reform programme has been set up in line with the following principles:</u><br/>
+
Four main generators are active in Jordan: The private company '''Central Electricity Generating Company (CEGCO)''', with a nominal capacity of 1,669 MW (2011), which produces around 52% of the electricity in Jordan (2010).<br/>The '''Samra Electric Power Generation Company (SEPGCO) '''is responsible for the operation of the conventional energy power plant in Al-Risha. In 2011 it had a nominal capacity of around 880 MW.<br/>'''IPP1 (AES Jordan) '''and '''IPP2 (Al-Qatraneh Power Generation Company)''' are combined cycle plants with a nominal capacity of 380 MW each.<ref>GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.</ref><br/>In the pipeline are two more IPP projects: IPP3 is implemented by the Korean KEPCO, the Japanese company Mitsubishi and the Finnish company Wartsilla. IPP4 is implemented AES and Mitsue, the same companies which run IPP1. Both IPP3 and IPP4 are on a Build, Own, Operate basis (BOO) and include the construction of generating plants run by heavy fuel oil, diesel oil and natural gas situated in the Amman East area.<br/>[[Jordan_Energy_Situation#toc|►Go to Top]]<br/>
*To give high priority to recruiting private investors willing to participate in the expansion of the electricity sector. These investors are to help satisfy a growing need.<br/>
 
*To restructure and privatise state-owned companies wherever it makes sense, in order to create independent and economically viable facilities.<br/>
 
*To bring independent power producers into the sector.<br/>
 
*To set up a regulatory system that establishes reliable, transparent and comprehensible basic rules for all participants in the electricity sector.<br/>
 
*To promote environmental and safety standards as well as energy efficiency.<br/>
 
  
[[Jordan_Energy_Situation#toc|►Go to Top]]
+
= Energy Cooperation<br/> =
  
== Implementation ==
+
In 2004, the Jordanian Government submitted an application for a US$ 6 million grant from the Global Environment Facility (GEF/World Bank) for a development project in the field of wind power. Part of the remit of this “Promotion of a Wind Power Market Project” is to eliminate obstacles that stand in the way of the commercial use of wind power in Jordan. The aim on the one hand is to improve the legislative and administrative preconditions for the use of renewable energy resources. On the other hand, the project is also to comprise the construction of a 60 MW wind farm that is to be&nbsp;financed by private investors. So far, however, only US$ 350,000 has been approved for feasibility studies.<br/>Since 2005, the Japanese Government, together with the Jordanian Government, has been sponsoring four studies investigating the potentials of renewable energy resources in Jordan within the framework of the “Policy and Human Resources Development Fund” (PHRD) of the World Bank. The Japanese share amounts to US$ 1 million, while Jordan is contributing a further US$ 312,000. One particular focus here too is on the wind power segment. Furthermore, the United States Trade and Development Agency (USTDA) is funding (US$ 180,000) a feasibility study into the expansion of the existing wind farms in Hofa and Al-Ibrahimiya.<br/>
  
This restructuring took place in three phases. In Phase 1 (1994 to 1996), the following measures were implemented: amendment of legislation to enable deregulation of the electricity sector; separation of legislative formation, regulation and operation of the electricity sector; transformation of the electricity authority, JEA, into a joint stock company (NEPCo) that operates according to free-market principles; establishment of the regulatory authority for specifying electricity tariffs; and finally, introduction of a legal framework for independent power producers.
+
== Bilateral Energy Cooperation with Germany<br/> ==
  
The following measures were implemented in Phase 2 (1996 to 2001): unbundling of NEPCo into separate companies for power generation (CEGCo), transmission (still NEPCo) and distribution (EDCo), whereby NEPCo is still state owned and retains and operates the facilities for transmitting electricity and distributing the load nationwide; extension of the tasks of the regulatory authority to include the issuing of licences to operators of power plants and distribution networks, protection of the rights and interests of electricity customers, the setting-up of quality standards and the approval of investment programmes.
+
Germany is one of the biggest bilateral donors in Jordan, along with the United States, Japan and the European Union. This bilateral cooperation focuses on the water sector.<ref>http://www.auswaertiges-amt.de/EN/Aussenpolitik/Laender/Laenderinfos/01-Nodes/Jordanien_node.html</ref><br/><br/>[[Jordan_Energy_Situation#toc|►Go to Top]]<br/><br/>
  
Phase 3 (running since 2001) comprises the privatization of NEPCo and its power generation and distribution subsidiaries. This is to be achieved either by issuing shares or by selling off stakes to strategic partners.
+
<br/>
 
 
In March 2004, the Jordanian cabinet passed a resolution under which the state’s shares in the distribution companies EDCo and IDECo are also to be sold off, as are 51% of the shares in the national generation company, CEGCo, which has until now been wholly owned by the state. The first attempt in 2005 to sell these shares within the framework of an international tendering process failed due to the lack of a suitable bidder. Following a renewed call for tenders, negotiations were started with investors from Amman (JD Capital), Kuwait (Kharafi National) and Dubai (Abraaj Capital). In January 2007, 64 members of the Jordanian parliament issued a memorandum opposing the sale of CEGCo. Instead, they demanded an increase in the electricity prices of 0.54 euro cents/kWh (5 fils) to bale out the loss-making public corporation.
 
 
 
The Government has being attempting for a long time now to conclude contracts with independent power producers with the aim of expanding the number of power stations in Jordan’s electricity generating system, but it is made only very slow progress. A number of potential projects have been abandoned. The Jordanian Government is currently searching for private investors willing to invest in the construction and operation of new power plants up to 2015, plants that together will offer an additional 1,500 MW or so of capacity.
 
 
 
At the end of 2005, Jordan awarded the first concession for a privately funded power plant project. A combined cycle power station with a planned capacity of 280-400 MW is being built in the vicinity of the capital, Amman. The US$ 280 million project, which is being financed and conducted by AES Oasis headquartered in Dubai20 and its Japanese partners (Mitsui & Company), is to come on stream in 2008. According to the Government, there are plans for a second project to be conducted by an independent power producer, with another 280-400-MW power station that is to commence generating electricity as of 2010.
 
 
 
As a general rule, the issuing of licences is regulated by the General Electricity Law, Article 28 onwards. In conformance with this law, the regulatory authority issues licences to firms that wish to generate, distribute or sell electricity. Generating plants with a capacity of up to one megawatt are allowed to operate without a licence. Local supply networks with a capacity of max. 100 kW can be operated without a licence, in the same way as power plants that are used solely to generate electricity for self-consumption. Power supply companies or middlemen who want to purchase electricity from a power station with a capacity greater than 5 MW may conclude appropriate supply contracts only after competing in a public tendering process (Article 35). These rules apply equally to conventional thermal power stations and stations that generate electricity from renewable energy sources.
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
== Framework Conditions for Renewable Energies ==
 
 
 
=== Strategy and Objectives ===
 
 
 
In December 2004, the Jordanian Government passed a long-term development plan relating to energy supply for the nation. This plan makes provision for investments of around US$ 3 billion in the energy sector over the period up to 2025. It also envisages greater use of renewable resources in the energy industry, with particular emphasis being given to the use of wind power and solar power as well as the generation of energy from biomass. To achieve the planned share of 2% for renewable energy sources in the national energy balance, the development plan sees the need for investments to the tune of US$ 480 million. The plan does not specify how big the share private investors are to take is to be and to what extent the Government will contribute funds required.<br/>
 
 
 
According to its own information, the Ministry of Energy and Mineral Resources is planning a series of measures intended to speed up the development of renewable energy sources in Jordan. This includes a new law on renewable energy resources, so far unspecified incentive mechanisms and new maps showing where potential lies for wind and solar energy. Also under discussion is a proposal to redesignate a special charge that has until now been levied to promote rural electrification.
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
=== Legal Conditions and Support Schemes ===
 
 
 
The Jordanian Government has publicly expressed its intention to promote the use of renewable energy sources and has regulated the associated responsibilities in its General Electricity Law passed in 2003. According to Article 3, the '''Ministry of Energy and Mineral Resources (MEMR)''' has the task and the necessary powers to promote the use of renewable energy sources for power generation in Jordan. Within the MEMR, the departments for renewable energy sources and for energy conservation and environmental protection are responsible for planning and implementing projects that utilize renewable energy resources at a commercial level.
 
 
 
1998 saw the creation of the '''National Energy Research Center (NERC)''', which is responsible for R&D, conducting studies, implementing pilot installations, standardisation, technology transfer and training. The power companies conduct their activities in the field of renewable energy sources autonomously. The same applies to the country’s universities.
 
 
 
Jordanian Law No. 16 (the “Investment Promotion Law”) offers a number of concessions for investors who build industrial facilities – such as wind farms – in Jordan. This includes a 100% exemption of installation components and spare parts from customs duties, charges and taxes. Depending on the location of the facility, tax concessions of between 25% and 75% are possible on income tax and social services tax over a period of ten years.<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
=== Clean Development Mechanism<br/> ===
 
 
 
In January 2003, Jordan became the third Arab country to sign the Kyoto Protocol and declared its responsibility to pay due attention to the prevention of climate change while furthering the social and economic development of the country. By February 2007, Jordan had yet to submit any climate protection projects under the UNFCCC.<br/>The '''Designated National Authority (DNA)''' for CDM answers to the Ministry of Environment. The latter is currently looking for investors for two potential CDM projects. In both cases, the goal is to reduce the emission of gases harmful to the climate by converting and upgrading existing power stations to combined-cycle and natural-gas technology, respectively. The extent to which these projects amount to “additional” measures within the meaning of the CDM rules has, however, not been made clear by the ministry.<br/>One indicator of the fact that Jordan has not as yet fully laid down the preconditions for its participation in the international climate protection mechanisms is an additional grant to the tune of US$ 100,000, which Jordan’s Ministry of Environment received from GEF funds in 2005. The aim of this grant is to create further capacities so that Jordan is in a position to meet its obligations to notify within the framework of the UNFCCC.
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
= Institutional Set-up in the Energy Sector =
 
 
 
== Ministry of Energy and Mineral Resources (MEMR)<br/> ==
 
 
 
The Ministry of Energy and Mineral Resources (MEMR) lays down the goals and political framework conditions for development of the energy market. Its core task is to facilitate continuing development of the country by ensuring adequate availability of energy. This is meant to be brought about with as little expenditure as possible, but while maintaining high standards. To this end, the ministry also intends inviting foreign investors in the fields of power generation, oil production and the development of other locally available sources of energy.<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
== Electricity Sector Regulatory Commission<br/> ==
 
 
 
This independent institution established in 2001 has a whole range of tasks. On the one hand it fixes the electricity tariffs and the charges for services related to the sale of electricity. On the other hand it awards licences to power providers and distributors and monitors compliance with the terms of the licences. Furthermore, the commission has been set up to arbitrate between operators and electricity customers in order to find solutions that are as amicable as possible. It also has the job of mediating between power generators or operators of distribution networks in the event of disagreement.<br/>The overriding principle to be followed by the commission in all matters relating to the electricity sector is to ensure the interests of the public at large are looked after. To this end, it can both assume an advisory role as well as make public statements.<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
== National Energy Research Center (NERC)<br/> ==
 
 
 
The [http://www.nerc.gov.jo NERC]was established in 1998 with the goal of promoting scientific research in the fields of renewable energy sources and efficient energy use. Furthermore, the centre also has the task of exploring possibilities of using the oil shale that is readily available in Jordan to produce energy. And the final responsibilities of this establishment are in the fields of training and the transfer of technology in the above-mentioned research areas. The NERC cooperates with among others the [http://www.memr.gov.jo Ministry of Energy and Mineral Resources (MEMR)], the Royal Scientific Society and the Natural Resources Authority. The energy minister also holds the position of chairman of the centre.<br/>
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
== International Donor Activities<br/> ==
 
 
 
In 2004, the Jordanian Government submitted an application for a US$ 6 million grant from the Global Environment Facility (GEF/World Bank) for a development project in the field of wind power. Part of the remit of this “Promotion of a Wind Power Market Project” is to eliminate obstacles that stand in the way of the commercial use of wind power in Jordan. The aim on the one hand is to improve the legislative and administrative preconditions for the use of renewable energy resources. On the other hand, the project is also to comprise the construction of a 60-MW wind farm that is to financed by private investors. So far, however, only US$ 350,000 has been approved for feasibility studies.
 
 
 
<br/>Since 2005, the Japanese Government, together with the Jordanian Government, has been sponsoring four studies investigating the potentials of renewable energy resources in Jordan within the framework of the “Policy and Human Resources Development Fund” (PHRD) of the World Bank. The Japanese share amounts to US$ 1 million, while Jordan is contributing a further US$ 312,000. One particular focus here too is on the wind power segment. Furthermore, the United States Trade and Development Agency (USTDA) is funding (US$ 180,000) a feasibility study into the expansion of the existing wind farms in Hofa and Al-Ibrahimiya.
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
  
 
= Publications<br/> =
 
= Publications<br/> =
  
*[[:File:Energy policy framework for renewable energy and electricity market in Jordan.pdf|En-windenergy-jordan-study-2007.pdf]]<br/>
+
[[File:Energy policy framework for renewable energy and electricity market in Jordan.pdf|border|180px|En-windenergy-jordan-study-2007.pdf]] [[File:Enabling PV in the MENA Region - Jordan.pdf|border|180px|Enabling_PV_in_the_MENA_Region_-_Jordan.pdf]]<br/><br/>
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
  
 
= Further Information<br/> =
 
= Further Information<br/> =
  
 
*[http://www.jordan.gov.jo/wps/portal Jordan's Government Services Portal]<br/>
 
*[http://www.jordan.gov.jo/wps/portal Jordan's Government Services Portal]<br/>
*[https://www.cia.gov/library/publications/the-world-factbook/geos/jo.html Jordan's entry at The World Factbook]
+
*[https://www.cia.gov/library/publications/the-world-factbook/geos/jo.html Jordan's entry at The World Factbook]<br/>
 +
*[http://www.rcreee.org/content/jordan RCREE country page Jordan]<br/>
  
[[Jordan_Energy_Situation#toc|►Go to Top]]
+
[[Jordan_Energy_Situation#toc|►Go to Top]]<br/>
  
 
= References<br/> =
 
= References<br/> =
  
<references /><br/>
+
<references /><br/>[[Jordan_Energy_Situation#toc|►Go to Top]]
 
 
 
 
[[Jordan_Energy_Situation#toc|►Go to Top]]
 
  
 
[[Category:Jordan]]
 
[[Category:Jordan]]
 
[[Category:MENA_(Middle_East_and_North_Africa)]]
 
[[Category:MENA_(Middle_East_and_North_Africa)]]
[[Category:Country_Energy_Situation]]
 
[[Category:Countries]]
 
[[Category:CES_Country]]
 

Latest revision as of 20:04, 10 July 2018

Jordan
Flag of Jordan.png
Location _______.png

Capital:

Amman

Region:

Coordinates:

31.9500° N, 35.9333° E

Total Area (km²): It includes a country's total area, including areas under inland bodies of water and some coastal waterways.

89,318

Population: It is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin.

11,337,052 (2023)

Rural Population (% of total population): It refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.

8 (2023)

GDP (current US$): It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.

50,813,642,349 (2023)

GDP Per Capita (current US$): It is gross domestic product divided by midyear population

4,482.09 (2023)

Access to Electricity (% of population): It is the percentage of population with access to electricity.

100.00 (2022)

Energy Imports Net (% of energy use): It is estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.

96.81 (2014)

Fossil Fuel Energy Consumption (% of total): It comprises coal, oil, petroleum, and natural gas products.

97.61 (2014)

Source: World Bank



Introduction

The Hashemite Kingdom of Jordan covers an area of 89,342 km² on the northern Arabian Peninsula. It borders with Syria, Israel, Iraq, Saudi Arabia and the West Bank (Palestine) as well as the Red Sea, with only 1.5% of its surface being arable land.[1] The climate is semi-dry in summer and cool in winter.

Energy Situation

Energy Data

Primary Energy Supply

Jordan has two main challenges regarding its energy situation: the growing energy demand on the one hand and the very limited domestic resources to fulfill this demand on the other hand. In 2012, the local production of energy – including crude oil, natural gas and renewable energy – was 272 ktoe (thousand tonnes of oil equivalent)[2], which was enough to cover only about 5% of the energy consumption. Including imports, the primary energy supply was 7,624 ktoe in 2012.[3]


Consumption

Final energy consumption in Jordan in 2012 added up to 5,013 ktoe. The share of the individual sectors is shown in table 1.

Table 1: Final energy consumption in Jordan in 2012 by sector (ktoe)[4]

Sector
in ktoe
 in %
Industry sector 692 13.80
Transport sector 2,289 45.66
Other sectors 1,903 37.96
of which Residential 1,200 23.94

Commericial and public services 369 7.36

Agriculture/ Forestry 168 3.35

Non-specified 166 3.31
Non-energy use 130 2.59
Total 5,013 100


Import and Export

The limited domestic resources meant that Jordan had to import 7,656 ktoe (thousand tonnes of oil equivalent) of energy to meet its demands. This means that the cost of the consumed energy amounts to as much as 17% of the GDP.[5]
In the past, one of the main sources of the imported energy was Egypt, from where Jordan imported natural gas. However, there have been problems of the service being disrupted, which caused enormous problems with regards to the energy security in Jordan. Therefore, Jordan has increased efforts to diversify its energy supply.

Subsidies

In 2012, the government of Jordan eliminated all fuel subsidies.[6] In 2014, Jordan’s finance minister stated that electricity subsidies will be eliminated by 2017.[7]

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Renewable Energy

The use in Jordan of renewable energy sources has until now been marginal, accounting for a share of less than 1% of electricity generation. In 2012, of the 16.5 MW generated by renewable energy resources, 60.4% were hydropower, 21.1% biomass, 9.7% PV and 8.8% wind[8]. Potentials for generating power from renewable energy resources in the country are to be found primarily in the areas of wind and solar energy.

Wind Energy

Jordan has a number of regions that enjoy wind speeds suitable for generating electricity. Those regions with the greatest potential are located in the North and South of the country. A wind atlas, which was drawn up by the Danish Risø research centre in cooperation with the Jordanian authorities, has been available for Jordan since 1989. According to the Ministry of Energy and Mineral Resources, this wind atlas is in the process of being updated with results taken from recent measurements.
So far, two wind farms have been built and connected to the grid in Jordan. One has a generating capacity of 320 kW (4 x 80 kW) and was constructed in 1998, in cooperation with a Danish company, in Ibrahimyya near Hofa, as a pilot project. The second was completed in 1996 in Hofa (financed with funds from the German Eldorado programme) and has a capacity of 1.2 MW (5 x 225 kW). They generated around 3 GWh of electricity in 2012[9]. The share of electricity from wind is supposed to significantly increase. In 2013, a contract was signed with a consortium of Jordanian and international companies for the 117 MW Tafila wind farm. It is supposed to increase the country's total power capacity by 3%, with commercial operation envisioned to start by mid-2015[10].
A second contract has been signed on an EPC (Engineering, Procurement and Construction) basis with the Spanish company Elecnor. This wind park in Maan, a city in the South of Jordan, is supposed to produce 33 x 2 MW and to start supplying energy by the end of 2015[11].


Solar Energy

In Jordan, natural conditions for solar are excellent, with an intensity of direct solar radiation with 5 to7 kWh/m².[12] So far, solar PV has mainly been used for powering off-grid installations such as telecommunication towers, water pumping, and desalination of brackish water, as well as to provide dwellings in remote areas that are not connected to the electricity grid and where desalination had not been installed. Until the publication of the Renewable Energy Law in 2012, an estimated 236.4 kWp had been installed in Jordan.[13]
In late April 2014, around 3 to 4 MW of PV systems had been installed on a decentralized level, with around 5 MW more under construction, all connected to the distribution grid under the net-metering scheme. It was estimated that more than 400 registered installation companies exist in Jordan, although only around 10 companies are actively doing business in the field for on-grid markets in early 2014. In addition, 12 projects with 170 MWp were to be constructed under the first round of Direct Proposals for PPAs that was initiated in October 2011. By April 2014 none of these projects had been realized yet, but negotiations were in their final stage, with financial closure to be accomplished by autumn 2014.[14]
In addition, two tendered PV projects, one totaling 2 MWp, financed by Spain in the Azraq area, and another totaling 65 – 75 MWp in Quweirah (Aqaba), financed through a fund of Abu Dhabi, were to be evaluated by the Ministry for Energy and Mining Resources (MEMR) in 2014.[15]

Hydropower

Jordan has no notable bodies of flowing water suitable for the construction of hydroelectric power stations. The only such plant is at the King Talal dam on the Az Zarqa River, with a capacity of 5 MW. Another hydroelectric generating facility employs a turbine to exploit the head of the cooling water taken from the sea to cool a thermal power station in Aqaba as it flows back to the sea. In 2012, these two stations together generated 61 GWh of electricity and were therefore the source of 0.4% of the electricity generated in the country as a whole.

Biogas

In cooperation with the United Nations Development Programme (UNDP), a project has been developed for utilising the methane gas that arises at the municipal waste disposal site in Amman. With the aid of the Global Environmental Facility (US$ 2.5 million) and the Danish development agency DANIDA (US$1.5 million), a biogas facility has been financed that captures the gases that arise at the landfill and uses a 1-MW generator to generate electricity for the interconnected power grid. The facility has been in service since 2000 and generates some 5 GWh of electricity annually. The installation is run by the Jordan Biogas Company, a joint stock company that is owned by the Central Electricity Generation Company (CEGCO) and the Greater Amman Municipality (GAM). Since 2001, the biogas sector has hardly been expanded; it produced about 6 GWh in 2012.


Biomass

Due to the arid climate, there is not a great deal of vegetation in Jordan. This obviously limits the potential use of vegetable biomass. The burning of vegetable biomass serves to a limited extent in rural regions for cooking and heating and is the main source of energy of the Bedouin in the desert. Great energy potential is to be found in household wastes (municipal solid wastes), which has an organic content of roughly 60%, and is estimated to add up to an annual total of 1.1 million tonnes. This equates to a daily per capita figure of between 0.35 and 0.95 kg of waste with a gross calorific value of 7-11 MJ/kg. The figures vary depending on the time of year and also differ between urban and rural regions.

Geothermal Energy

Geothermal resources in Jordan have been identified mainly in two regions. That said, both the sources on the eastern banks of the Jordan Valley and those on the plateau to the east of Madaba offer comparatively low temperatures below 100°C. This means they cannot be used to generate electricity and will continue to be used for thermal purposes only, such as for heating swimming pools and greenhouses.


Electricity

Installed Capacity and Generation

In 2013, the Jordanian interconnected power grid was supplied by an installed power station capacity of 3,193 MW.[16] The generated and imported electrical energy amounted to 17,643 GWh in the same year. The available capacity development by type of generation since 2010 is outlined in table 2.

Table 2: Available capacity development by type of generation (in MW) 2010-2013[16]


2010
2011 2012 2013
MW
Steam
925 925 925 791
Gas turbine (diesel) 149 134 134 27
Gas turbine (natural gas) 600 499 499 621
Combined cycle 1,317 1,737
1,737 1,737
Hydro
12 12 12 12
Wind
1.4 1.4 1.4 1.4
Biogas 3.5 3.5 3.5 3.5

Total 3,008 3,312 3,312 3,193

In addition to the power stations operated by the public utilities, there are also a number of industrial enterprises that generate electricity in their own plants. Some of these also feed excess electricity into the Jordanian interconnected grid. Since the amount of electricity generated in Jordan has for some years been insufficient to cover the country’s needs, additional power used to be imported from Egypt and Syria. However, due to the circumstances in the region, import has been stalled completely (Syria, since 2012) or reduced (Egypt).[16]

Consumption

The main consumer of electricity in Jordan is the domestic sector (including government buildings) which accounts for 43% of the total consumption, followed by the industrial sector (24%). Overall consumption has been steadily increasing in the recent years. The development of the electricity consumption per sector is outlined in table 3.

Table 3: Electricity consumption by sector (in GWh) 2008-2013[16]

Sector
2008 2009 2010 2011 2012 2013
GWh
Domestic (incl. government buildings) 4,459 4,888 5,225 5,667 6,126 2,265
Industrial 3,128 3,006 3,262 3,486 3,461 3,517
Commercial 1,925 1,980 2,187 2,173 2,427 2,414
Water Pumping 1,713 1,772 1,868 1,899 1,955 2,076
Street Lighting 284 310 315 310 305 291

Total 11,509 11,956 12,857 13,535 14,277 14,564


Grid

The Jordanian national interconnected grid transmits electricity from the power stations to the distribution substations and transformer substations in the various regions of the kingdom via 400-kV and 132-kV power lines. The star topography of the grid has a clearly identifiable north-south axis, along which the only 400-kV power line runs, from Aqaba in the south via Amman and up to the Syrian border. The only area in which the grid has a ring-shaped configuration is around the capital city. In the north, the power grid is connected to the Syrian grid by means of a 230-kV and a 400-kV power line. In the south, there is a 400-kV connection to the Egyptian grid. The interconnected grid feeds the local distribution systems via which almost the entire population of Jordan receives its electricity. The overall length of the installed high voltage power lines (132 kV and 400 kV) is around 3,400 km. The National Electric Power Company (NEPCO) is planning to develop a new high voltage transmission network, called “green corridor”, running South-North in order to reinforce the electric grid. The project was initially planned for 2015, but due to delays it seems that it will be not be operational before 2018.[17]

Electricity Prices

The electricity tariff structure in Jordan takes into account social aspects as well as the economic capacities of consumers. In 2014, the electricity prices for the end consumer ranged from JD 0.033 per kWh for small residential consumers with less than 150 kWh per month demand to JD 0.292 per kWh for the banking sector. In 2012, the generation and distribution costs were JD 0.146 per kWh, whereas the average selling price was JD 0.0636 per kWh. The difference in price had to be covered by the state-owned National Electric Power Company (NEPCO), thereby creating a substantial deficit of JD 2.3 billion by the end of 2012. In order to reduce the losses, a National Strategic Plan has been developed. It foresees the adjustment of electricity tariffs and other measures to enhance the efficiency of the electricity system. By the end of 2017, NEPCO is supposed to be able to cover its costs. The plan prescribes the electricity price development for different consumer categories until the year 2017. Nevertheless, electricity is subsidized for many categories, e.g. for consumers with low electricity consumption.[18]
The electricity tariff schedule for the period from 2013 to 2017 is available here: http://www.memr.gov.jo/LinkClick.aspx?fileticket=PHxs463H8U0=&tabid=255
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Energy Policy

General Information

More than 96% of energy resources have to be imported. That is why, from an economic point of view, it is important for NEPCO as well as for consumers paying high prices for energy to look for cheaper alternatives of electricity supply. This is especially true since the overall political situation in the region remains unstable, making the option of cheap gas or electricity imports less probable in the near to mid-range future. Alternative energy sources such as shale oil or nuclear power require at least several years of exploration and development activities before deployment, and the LNG terminal for gas in Aqaba is still under construction. A growing population and the corresponding increase in energy consumption require solutions that can quickly generate additional electricity capacities.[19]
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Renewable Energy Policy

As a general rule, the issuing of licenses is regulated by the General Electricity Law, Article 28 onwards. In conformance with this law, the regulatory authority issues licenses to firms that wish to generate, distribute or sell electricity. Generating plants with a capacity of up to one megawatt are allowed to operate without a license. Local supply networks with a capacity of max. 100 kW can be operated without a license, in the same way as power plants that are used solely to generate electricity for self-consumption. Power supply companies or middlemen who want to purchase electricity from a power station with a capacity greater than 5 MW may conclude appropriate supply contracts only after competing in a public tendering process (Article 35). These rules apply equally to conventional thermal power stations and stations that generate electricity from renewable energy sources.
To develop renewable energy capacities, a number of support mechanism have been introduced. For example, under the Jordanian net-metering scheme, the excess electricity fed into the grid is credited for later consumption. This excess electricity that is credited can be used to offset electricity used at other times, when there is little or no PV electricity production (e.g. at night). The legal basis for net-metering is the 2012 Renewable Energy and Energy Efficiency Law No. 13 (REEL). The REEL as well as bylaws enable Independent Power Producers (IPP) to provide electricity from renewable sources to NEPCO within long-term Power Purchase Agreements (PPA). Private investors may also invest in their own PV system up to 5 MWp to directly consume the electricity produced and offset it against their entire demand within a net-metering scheme. The REEL even allows the generation of electricity at a different site than where the actual consumer is located – so-called energy wheeling. As a result, there are two promising business cases that enable investments in renewable energies: Direct Proposals for PPAs under consecutive rounds of “expressions of interest” and net-metering.
The Government has being attempting for a long time now to conclude contracts with Independent Power Producers (IPP) with the aim of expanding the number of power stations in Jordan’s electricity generating system. Initially, it made only slow progress. A number of potential projects were abandoned. Now, IPP projects with a total generation capacity of 740 MW (conventional energy) have been implemented. The IPP model is also used for renewable energy plants. However, by June 2014, no renewable energy plants had been constructed under the first round of the tender scheme and the following two rounds of direct proposals. In the first round, initiated in 2011, PPAs covering 170 MWp of solar PV were initially signed between 12 IPP companies or consortia and the Ministry for Energy and Mining Resources (MEMR). Until April 2014, these were in the process of financial negotiations between investors and the potential IPPs. Those systems were due to be constructed and connected to National Electric Power Company’s (NEPCO) transmission lines within the next 16 months. In the following two rounds of direct proposals, another 400 MWp of solar PV systems had been tendered for direct proposals, including four 50 MW plants and two 100 MW plants.[20]
In 2007, Jordan updated its Master Strategy for Energy for the period of 2007 to 2020, which had initially been drafted in 2004. The strategy aims at reducing energy imports through diversification of the energy mix by using local resources such as shale oil, nuclear power and renewable energies. Although at the moment the strategy still serves as a guideline for renewable energies, its assumptions can be considered to be outdated, especially since it assumes that nuclear and shale oil will cover a considerable share of Jordan’s energy demand by 2015 and 2020.[21]

Energy Efficiency Policy

In the Master Strategy for Energy in Jordan for the period of 2007 to 2020 there are also several recommendation concerning energy efficiency. These include the implementation of energy consumption efficiency programs in different sectors, broad awareness campaigns on the energy consumption rationalization, tax exemptions for energy saving equipment, thermal insulation of buildings and a national award in the energy consumption rationalization domain.
Jordan also introduced a National Energy Efficiency Action Plan (NEEAP) which is in the process of adaptation. The NEEAP gives a national indicative target of 20% energy reductions by 2020 and six sectorial targets.
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Key Actors in the Energy Sector

Governmental Bodies and Agencies

The Ministry of Energy and Mineral Resources (MEMR) lays down the goals and political framework conditions for development of the energy market. Its core task is to facilitate continuing development of the country by ensuring adequate availability of energy. This is meant to be brought about with as little expenditure as possible, but while maintaining high standards. To this end, the ministry also intends inviting foreign investors in the fields of power generation, oil production and the development of other locally available sources of energy.
In 2014, the Electricity Regulatory Commission, the Jordan Nuclear Regulatory Commission and the Natural Resources Authority (NRA) were merged to form the Energy and Minerals Regulatory Commission (EMRC). The EMRC was built in accordance with Law No. 17 which regards the restructuring of institutions and governmental organization. It is an independent institution which is responsible for the regulatory environment of the electricity sector. To this end, it fixes the electricity tariffs and the charges for services related to the sale of electricity. The EMRC also awards licenses to power providers and distributors and monitors compliance with the terms of the licenses. Furthermore, the commission has been set up to arbitrate between operators and electricity customers in order to find solutions that are as amicable as possible. It also has the job of mediating between power generators or operators of distribution networks in the event of disagreement

Utilities

The national power company, National Electric Power Company (NEPCO), is a joint stock corporation whose capital is completely in the hands of the Jordanian state. It is responsible for expanding and operating the nationwide transmission network. NEPCO purchases the electricity from the producers as the sole buyer, in order to sell it on to the operators of the distribution networks. The company operates a national load-dispatching centre to coordinate the demand for and the supply of power. Its unique position as single buyer and single seller and the subsidies for electricity led to massive budgetary deficiencies. In order to reduce the losses, a National Strategic Plan has been developed. It foresees the adjustment of electricity tariffs and other measures to enhance the efficiency of the electricity system. By the end of 2017, NEPCO is supposed to be able to cover its costs.
Three private companies act as Distribution System Operators (DSO) in Jordan: The Jordanian Electric Power Company (JEPCO) is responsible for distributing electrical energy for about 66% of the country’s total consumers. It serves 5,000 km2 (Amman, Zarqa, Madaba and Al-Balqaa) and is made up of more than 5,600 main stations and substations with a total of 19,000 kilometers of underground and overhead lines.
The Electricity Distribution Company (EDCO) was established in 1997 and is now responsible for distributing electrical energy to the southern part of the Kingdom, including Aqaba, Maan, Karak, Tafila, Jordan Valley, Azraq, Safawi, Royweshed, and Reshah. The Irbid District Electricity Company (IDECO) was established in 1957 and is now responsible for distributing electrical energy to the northern part of the Kingdom, which includes Irbid, Jerash, Mafraq and Ajloun.
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Others

Four main generators are active in Jordan: The private company Central Electricity Generating Company (CEGCO), with a nominal capacity of 1,669 MW (2011), which produces around 52% of the electricity in Jordan (2010).
The Samra Electric Power Generation Company (SEPGCO) is responsible for the operation of the conventional energy power plant in Al-Risha. In 2011 it had a nominal capacity of around 880 MW.
IPP1 (AES Jordan) and IPP2 (Al-Qatraneh Power Generation Company) are combined cycle plants with a nominal capacity of 380 MW each.[22]
In the pipeline are two more IPP projects: IPP3 is implemented by the Korean KEPCO, the Japanese company Mitsubishi and the Finnish company Wartsilla. IPP4 is implemented AES and Mitsue, the same companies which run IPP1. Both IPP3 and IPP4 are on a Build, Own, Operate basis (BOO) and include the construction of generating plants run by heavy fuel oil, diesel oil and natural gas situated in the Amman East area.
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Energy Cooperation

In 2004, the Jordanian Government submitted an application for a US$ 6 million grant from the Global Environment Facility (GEF/World Bank) for a development project in the field of wind power. Part of the remit of this “Promotion of a Wind Power Market Project” is to eliminate obstacles that stand in the way of the commercial use of wind power in Jordan. The aim on the one hand is to improve the legislative and administrative preconditions for the use of renewable energy resources. On the other hand, the project is also to comprise the construction of a 60 MW wind farm that is to be financed by private investors. So far, however, only US$ 350,000 has been approved for feasibility studies.
Since 2005, the Japanese Government, together with the Jordanian Government, has been sponsoring four studies investigating the potentials of renewable energy resources in Jordan within the framework of the “Policy and Human Resources Development Fund” (PHRD) of the World Bank. The Japanese share amounts to US$ 1 million, while Jordan is contributing a further US$ 312,000. One particular focus here too is on the wind power segment. Furthermore, the United States Trade and Development Agency (USTDA) is funding (US$ 180,000) a feasibility study into the expansion of the existing wind farms in Hofa and Al-Ibrahimiya.

Bilateral Energy Cooperation with Germany

Germany is one of the biggest bilateral donors in Jordan, along with the United States, Japan and the European Union. This bilateral cooperation focuses on the water sector.[23]

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Publications

En-windenergy-jordan-study-2007.pdf Enabling_PV_in_the_MENA_Region_-_Jordan.pdf

Further Information

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References

  1. GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.
  2. http://www.iea.org/statistics/statisticssearch/report/?country=JORDAN&product=balances&year=2012
  3. http://www.iea.org/statistics/statisticssearch/report/?country=JORDAN&product=balances&year=2012
  4. http://www.iea.org/statistics/statisticssearch/report/?country=JORDAN&product=balances&year=2012
  5. http://www.memr.gov.jo/LinkClick.aspx?fileticket=B495BBqcNs4%3d&tabid=111
  6. http://www.economist.com/news/finance-and-economics/21639589-few-countries-are-taking-advantage-lower-oil-prices-cut-subsidies-pump
  7. http://www.aawsat.net/2014/05/article55332275/jordans-finance-minister-we-will-eliminate-electricity-subsidies-by-2017
  8. http://www.rcreee.org/sites/default/files/jordan_fact_sheet_re_print.pdf
  9. http://www.iea.org/statistics/statisticssearch/report/?year=2012&country=JORDAN&product=RenewablesandWaste
  10. http://www.memr.gov.jo/LinkClick.aspx?fileticket=B495BBqcNs4%3d&tabid=111
  11. http://www.rechargenews.com/wind/1370753/Elecnor-Gamesa-in-Jordan-wind-joy
  12. http://www.memr.gov.jo/LinkClick.aspx?fileticket=B495BBqcNs4%3d&tabid=111
  13. GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.
  14. GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.
  15. GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.
  16. 16.0 16.1 16.2 16.3 http://www.nepco.com.jo/store/docs/web/2013_en.pdf
  17. http://www.invest-export.irisnet.be/documents/16349/1140680/2014+-Jordan+-+Renewable+energy+prospects.pdf/eb6cb1ff-a6d9-4d7c-804f-13b68877d86d
  18. GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.
  19. GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.
  20. GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.
  21. GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.
  22. GIZ (2014): Enabling PV in the MENA Region. The Emerging PV Market in Jordan.
  23. http://www.auswaertiges-amt.de/EN/Aussenpolitik/Laender/Laenderinfos/01-Nodes/Jordanien_node.html


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