Jordan Energy Situation

• Countries Portal
• Countries Group
• All Jordan Articles

Jordan

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.

11,285,869 (2022)

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 (2022)

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.

48,653,381,781 (2022)

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

4,311.00 (2022)

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

99.90 (2021)

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. 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 2013, the local production of energy – including crude oil, natural gas and renewable energy – was 272 ktoe (thousand tonnes of oil equivalent), which was enough to cover only about 5% of the energy consumption.

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 (ktoe)

		ktoe	%
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.
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. In 2014, Jordan’s finance minister stated that electricity subsidies will be eliminated by 2017.

►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. 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. 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.The share of electricity from wind is supposed to significantly increased. In 2013, a contract was signed with a consortium of Jordanian and international companies for the In 2012, Jordan introduced a Direct Proposal Submissions scheme in order to expand its RE supply, which opens the market for Independent Power Producers (IPP). Developers can qualify by submitting an Expression of Interest (EOI). Under this scheme, the construction of the first IPP wind park has been launched: 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.
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.
<u</u>

Solar Energy

In Jordan, natural conditions for solar are excellent, with an intensity of direct solar radiation with 5 to7 kWh/m². 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[BMG2] .
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.
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.

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.

►Go to Top

Electricity Situation

The Electricity Grid

Level of development of Jordan’s transmission network; 2000, 2005

Power line ratings	2000	2005
km
400 kV	809	871
230 kV	17	17
132 kV	2200	2512
66 kV	17	17

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.
►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.

Installed power plant capacity and available capacity (incl. imports) in Jordan; 2001-2005

	2001	2002	2003	2004	2005
MW
Steam power plants	1013	1013	1013	1013	1013
Diesel generators	43	43	43	43	43
Gas turbine (diesel)	353	353	353	353	353
Gas turbine (natural gas)	120	120	120	120	120
Combined-cycle power station (CCPS)					300
Hydropower	10	12	12	12	12
Wind	1.4	1.4	1.4	1.4	1.4
Biogas	1	1	1	1	1
Installed capacity (total)	1541	1643	1643	1643	1873
Available capacity, incl. imports	n.a	1788	1788	1789	2019

►Go to Top

Electricity Generation

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.
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).

Electricity generation in Jordan according to type of generation; 2000-2005

	2001	2002	2003	2004	2005
GWh
Electricity sector	7144	7630	7489	8471	9138
Steam power plants	6240	6771	6430	7168	7524
Diesel generators	1	3	1	1	2
Gas turbines (diesel)	83	115	262	464	341
Gas turbines (natural gas)	769	680	746	776	648
CCPS					558
Hydropower	43	53	41	53	57
Wind	3	3	3	3	3
Biogas	5	5	6	6	5
Industrial sector	405	502	505	496	516
Steam power plants	364	434	428	422	445
Diesel generators	41	68	77	74	71
Total	7549	8132	7994	8967	9654

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.
►Go to Top

Electricity Prices

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.
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.

Development of electricity prices in Jordan; 1996-2005; prices in euros

	1996-2002	2002-2003	since 2005
Major customers
Power providers
Demand charge (€/kW/month)	2.63	2.63	2.63
Day-time tariff (€/kWh)	0.032	0.034	0.037
Night (off-peak) rate (€/kWh)	0.021	0.023	0.026
Large-scale industry
Demand charge (€/kW/month)	2.63	2.63	2.63
Day-time tariff (€/kWh)	0.052	0.053	0.053
Night (off-peak) rate (€/kWh)	0.035	0.035	0.035
End customers (excl. major customers)
Private households
1-160 kWh (€/kWh)	0.033	0.034	0.034
161-300 kWh (€/kWh)	0.057	0.060	0.065
301-500 kWh (€/kWh)	0.066	0.070	0.073
Over 500 kWh (€/kWh)	0.082	0.088	0.090
Trades and crafts	0.066	0.068	0.069
Light industry	0.040	0.042	0.045
Hotels	0.066	0.066	0.066
Water pumps	0.037	0.042	0.044
Street lighting	0.022	0.027	0.033

►Go to Top

Rural Electrification

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.
TheRural 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.
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.
►Go to Top

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. ►Go to Top

Power Generating Companies

Central Electricity Generating Company (CEGCo)
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.
Samra Electric Power Generating Company (SEPGCo)
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.
►Go to Top

Power Transmission Companies

National Electric Power Company (NEPCo)
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.
►Go to Top

Distribution Companies

Jordan Electric Power Company (JEPCo) 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.
Irbid District Electricity Company (IDECo)
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.
Electricity Distribution Company (EDCo)
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. ►Go to Top

Political Framework Conditions

Deregulation

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. This restructuring has the following aims:

• Efficient and reliable electricity generation, which supports general long-term development of the country by providing electricity at affordable rates.
  
• 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.
  
• 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.

To achieve these aims, the reform programme has been set up in line with the following principles:

• 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.
  
• To restructure and privatise state-owned companies wherever it makes sense, in order to create independent and economically viable facilities.
  
• To bring independent power producers into the sector.
  
• To set up a regulatory system that establishes reliable, transparent and comprehensible basic rules for all participants in the electricity sector.
  
• To promote environmental and safety standards as well as energy efficiency.
  

►Go to Top

Implementation

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. 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. 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. 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. ►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.
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. ►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.
►Go to Top

Clean Development Mechanism

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.
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.
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. ►Go to Top

Institutional Set-up in the Energy Sector

Ministry of Energy and Mineral Resources (MEMR)

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.
►Go to Top

Electricity Sector Regulatory Commission

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.
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.
►Go to Top

National Energy Research Center (NERC)

The NERCwas 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 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.
►Go to Top

International Donor Activities

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.
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. ►Go to Top

Publications

Further Information

• Jordan's Government Services Portal
  
• Jordan's entry at The World Factbook

►Go to Top

References

►Go to Top