Jordan Energy Situation

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Overview

Hashemite Kingdom of Jordan
 
 

Capital

Amman (31°57′N 35°56′E)

Official language(s)

Arabic

Government

Constitutional monarch

King of Jordan

Abdullah II

Prime Minister

Marouf al-Bakhit

Total area

92,300 km2

Population

6,407,085 (2010 estimate)

GDP (nominal)

$99.129 billion

GDP Per capita

$4,435

Currency

Jordanian dinar (JOD)

Time zone

UTC+01

Calling code

+962

Energy Market

Overview Energy Market

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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.

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

Source: NEPCo

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 dieselfired 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

Source: NEPCo

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.

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

Source: NEPCo

Market Actors

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.

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.

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.

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.

Market potential for renewable energies

Wind Energy

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Framework Conditions for Wind Energy

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Licensing Procedures

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Business Climate

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Solar Energy

Solar ene

Biogas

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Hydro Power

cted.

Other renewable Sources

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Political Framework Conditions in the Energy Sector

Egypt

Liberalisation

Article 7 o

Important Laws and regulations

The mo

Framework Conditions for Renewable Energies

Strategy and objectives for renewable energies

Egypt’s 

Legal conditions and support Schemes for renewable Energies

To im

Clean Development Mechanism

Egypt’s

Institutional Set-up in the energy sector

Egyptian Ministry of Electricity and Energy

The first Mi

Regulatory authority EEUCPRA

The Egyptian

New and Renewable Energy Authority (NREA)

The Ministr

Egyptian Environmental Affairs Agency (EEAA)

The EEAA w

Egyptian Electricity Holding Company (EEHC)

The government-o

Egyptian Wind Energy Association (EGWEA)

The EGWEA is

International donor activities

Egypt is one of t

Existing Projects

Wind Energy

Egypt has p

Publications

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External links

References