Jordan has excellent solar and wind resources and is making renewable energy a priority. The country aims to source 10% of its energy from renewable sources like solar and wind by 2020. Jordan has established policies and incentives to attract renewable energy investments, including setting ceiling prices for different technologies, net metering, and tax exemptions. Projects are being developed through various approaches such as direct proposals, competitive bidding, and EPC contracts. The first round of direct proposals resulted in several solar PV projects that are now under construction. Jordan is on the right path to significantly increase renewable energy in its energy mix.

1. Renewable Energy in Jordan
Ziad Jebril Sabra
Director of Renewable Energy Department
Ministry of Energy and Mineral Resources
___________________________
OECD ISMED Annual Conference, Paris- December 4th 2014

2. • High solar radiation figures of
5 – 7 kWh/m2 per day with
about 300 sunny days per year.
• Jordan future Renewable Energy
source is Solar Energy.
•
Jordan enjoys world class quality Solar and Wind Energy
Ma’an &
Quweira
• Wind speed reaching between 7.5 to
11.5 m/s in some places.
• Wind projects are now feasible and
competitive without further
concessional support

3. Ministry of Energy and Mineral Resources
The Energy Mix in Jordan (2010 – 2020)
2010
2020
Domestic Resources 39%, Imported 61%
Domestic Resources 3%, Imported 97%
Domestic Resources 25%, Imported 75%
Oil Products 61%
Renewable 2%Imported
Electricity 1%
N. Gas 36%
Imported
Electricity 2% Imported
Electricity 1%
Renewable 10%
Renewable7%
Oil Products 40%
Oil Products 51%N. Gas 29% N. Gas 29% Nuclear 6%
Oil
Shale
11%
Oil
Shale
14%
2015
Jordan Energy Strategy

4. Ministry of Energy and Mineral Resources
For Renewables to have the right position
within the global Energy Context:
• Stable Regulatory Framework
• Adequate and Transparent Public Policies
and Targets
• Clear Financial and Support Schemes
• Well defined Infrastructure Provisions
(Lands, Grid connections, etc.)

5. Ministry of Energy and Mineral Resources
Jordan is at the right path
A target of 10% renewable energy input
into the energy mix by 2020 is set in the
National Energy Strategy, mainly aiming
for about 1000MW of Wind and 600MW
Solar.

6. Ministry of Energy and Mineral Resources
Regulatory Framework
o The Renewable Energy and Energy Efficiency Law
was passed as a permanent Law in April 2012.
o This law, the first in the region, allows investors to
identify and develop grid-connected electricity
production projects through the so called unsolicited
or direct proposal submission.
o the Jordan Renewable Energy and Energy Efficiency
Fund is established, which aims to channel financial
resources to that end.

7. Ministry of Energy and Mineral Resources
o A well-founded reference price list (ceiling prices)
for different Renewable technologies was set by the
ERC .
o Net- Metering for small RE Systems (Roof Tops)
with Fixed Purchase Prices for Excess Power,
o Tax Incentive regime , a By-Law was issued on Tax
exemptions for RE and EE systems and Equipment.
o Grid Expansion and Reinforcement Plans are
ongoing

8. Ministry of Energy and Mineral Resources
Reference Price List
RE source Tariff Fills/ kWh
Wind Energy 80
Solar Energy (CSP) 135
PV 100
Bio mass 90
Bio gas 60

9. Ministry of Energy and Mineral Resources
Renewable Energy Development Schemes
The Government is currently engaged with a three-
tracks approach to develop RE Projects as follows:
a. Direct Proposals
b. Competitive Bidding
c. EPC Turn-Key

10. Ministry of Energy and Mineral Resources
Direct Proposals Approach
Round 1:
• (64) Expressions of Interest were received in 2012 and (30) MOUs
were signed (total Capacity of 850 MW split between Solar and
Wind).
• (12) PV solar proposals were received in March 2013 with total
capacity of (200) MW. PPAs signed in March 2014, currently
under Financial Close. In addition, (10) MW PV on distribution
level with IDECO to be developed by a local company
Philadilphia Solar, PPA to be singed end June, to be operational
beginning 2015.
• The PPA for the first Wind Direct Proposal submission project for
117 MW at Tafila was signed in November 2013, currently under
construction.
• Wind Proposals of this round to be received end September 2014

11. Ministry of Energy and Mineral Resources
Round 2:
• Launched in August 2013, 83 Applications were received on
14 November 2013.
• (45) MOUs were signed with short listed PV bidders, and the
deadline for proposals submission end Dec. 2014.
• About (200-250) MW is allocated for this round
Round 3:
• Launched beginning February 2014. The deadline for
submission extended to 14 August 2014.(Cancelled due to
grid availability)
• About 400 MW estimated total capacity for this round (after
the Green Corridor expansion project)

12. Ministry of Energy and Mineral Resources
Competitive Bidding Process
o The first ranked bidder for the (90) MW IPP Wind
Energy Project at Fujeij was announced, currently
under final negotiation with KEPCO.
o Several projects are under investigation by MEMR to
be tendered on public lands on due time, pending on
grid capacity availability.

13. Ministry of Energy and Mineral Resources
EPC Turn-Key approach
o (65-75) MW Wind project at Maan, funded through a
Grant from the Kuwaiti Fund (USD 150 million).
Awarded to a Spanish contractor Elecnor, and to be
operational by end 2015.
o (65-75MW) Solar PV Project at Quweira/Aqaba, funded
through a Grant from Abu Dhabi Fund (USD 150
million). currently under Prequalification and to be
operational end 2015.

14. Ministry of Energy and Mineral Resources

15. Ministry of Energy and Mineral Resources
Notes on OECD Report on Jordan
 During Round 1 of the Direct Proposals Scheme both
developers and the government have learnt how to
implement the procurement process for the first time; this
led to some delays in the procurement process. However,
both parties will benefit from the experience gained during
the first round to avoid such delays in the next rounds.
 For example, several template documents like PPAs, IRPPs
are now available and this will definitely shorten the time
consumed for the related activities in the next rounds.

16. Ministry of Energy and Mineral Resources
Notes:
 Round 3 of the direct proposals submission was cancelled
due to the grid availability (As the Green Corridor will not
be ready until 2017 (according to NEPCO)).
 In Round 1, there were discussions to align tariffs across
alternative proposals submitted by developers; however, this
was a special case and will not occur again.

17. Ministry of Energy and Mineral Resources
Notes:
 The Reference Pricelist that defines the maximum tariff values
is defined by EMRC based on a well-defined study done by an
international consultant through the world bank.
 There was some confusion regarding the implementation of the
Tax Exemption Bylaw after the issuance of the bylaw
instructions; however, any issue that might raise during the
implementing is raised to a special committee in MEMR to
decide about it. Some implementation issues are already
identified and they will be considered when changing the
bylaw.

18. Ministry of Energy and Mineral Resources
Notes:
 JREEEF is already operational by law, and it’s partially
operational as a department under MEMR. JREEEF director
has been appointed, and hopefully it will be fully operational
beginning 2015.
 The government is committed to developing all local energy
resources like oil shale, RE, natural gas…etc.

19. Ministry of Energy and Mineral Resources
Conclusion
• Jordan has laid down the necessary Policy and
Regulatory frameworks for Renewable Energy, and
is ready now to attract and receive commercial
investments,
• Template contractual documents (mainly PPAs) and
Instructions for developing RE projects do exist.

20. Ministry of Energy and Mineral Resources