Round Table Meeting February 4, 2009

1. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
“Renewable Energy Law for Jordan”
Renewable Energy Round Table Session
- Reform of Electricity Laws -
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4th February 2009 , RCREEE - Cairo
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2. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
The Main Challenges of Energy Sector in Jordan
Jordan is facing a real challenge in securing of
energy supply due to :-
• almost no conventional energy resources .
• highly dependency on imported energy
( %96 import in 2007).
• high cost (The energy imports accounted for
21% of GDP in 2007).
• high growth of primary energy demand.
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3. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Energy Strategy ( 2007-2020)
MAIN GOALS :
• Diversifying the energy resources
• Increasing the share of local energy resources in the total
energy mix .
• Reducing the dependency on imported oil
• Enhancing environment protection
This will be achieved through :
• Expanding the development of renewable energy resources
• Promoting energy conservation and awareness
• Maximizing the utilization of domestic energy resources (oil
shale, natural gas, etc.)
• Generating electricity from nuclear energy.
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4. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
The Energy Mix in Jordan (2007 – 2020)
2007
Imported
Electricity 7% Renewable 1%
N. Gas 26%
Oil Products 66%
Domestic Resources 4%, Imported 96%
2015 2020
Imported
Electricity 2% Imported
Oil Renewable7% Renewable 10% Nuclear 6%
Electricity 1%
Shale 11% Oil
Shale 14%
Oil Products 51% Oil Products 40%
N. Gas 29% N. Gas 29%
Domestic Resources 25%, Imported 75% Domestic Resources 39%, Imported 61%
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5. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Renewable Energy Targets:
Promoting the Renewable Energy Source to share
7% in the primary energy mix in 2015 , and 10% in
2020 :-
600 – 1000 MW Wind Energy.
300 MW Solar Energy.
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6. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Energy Efficiency:-
Implementation of intensive energy efficiency
programs to reach 20% savings by 2020 in all sectors.
Establishment of the Energy Efficiency Fund to
support energy efficiency programs/projects, as well
as funding for renewable energy projects.
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7. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Renewable Energy Legeslation
Main Goals :
Provide a legal mandate for the government
and a regulatory framework for the RE
development
• Promote the use of renewable energy in
Jordan
• Encourage private-sector investment in RE
• Diversify energy sources in Jordan
• Reduce greenhouse gases
• Develop in-country expertise related to RE
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8. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Main Advantages
• Provide incentives and tax exemptions.
• Provide also a framework for Bidding
processes to RE projects .
• To support the above, can also establish a
regulatory structure to recognize RE
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9. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Main Articles
Part One:
• Creates a registry of RE sites
– Based on resource maps and measurements
– “Renewable Energy Resource Land Use List”
• Imposes restrictions on development of such lands,
• Development plan in respect of such lands
• Prevent loss or degradation of appropriate RE
locations
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10. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Main Articles (contd.)
Part Two:
• Authorizes MEMR to issue public tenders for
development of specific sites in accordance with the
Renewable Energy Resource Land Use List and
MEMR’s development plan .
• Permits unsolicited proposals complying with the RE
Law
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11. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Main Articles (contd.)
Part Three : Obligation to purchase RE
• All Energy Output from Qualified Renewable Energy
Facilities must be purchased pursuant to PPAs or
dispatch procedures
• Dispatch procedures for RE are to be implemented
without regard to « merit order » set out in the Grid
Code
• Tariff to be established by Power Purchase
Agreement (bid process)
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12. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Main Articles (contd.)
Part Four : Investment Incentives
• maximum permissible tax exemption under
Investment Promotion Law applied to all REF.
• Exemption from stamp duties and university fees
payable on contracts in Jordan
• Provides for lease of public lands to developers of
REF at no cost, and lease of appropriated private
land at cost
• All RE equipments locally manufactured are
exempted from all taxes.
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13. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Main Articles (contd.)
Part Five : Financial Incentives
Contemplates creation of a Fund called
“Renewable Energy and Energy Efficiency Fund”
with the aim of providing the necessary funding for
contributing to the exploitation of renewable
energy sources and efficient use of energy.
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14. Ministry of Energy and Mineral Resources ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
Main Articles (contd.)
Part Six : Construction and Interconnection Incentives
• Requires NEPCO to interconnect, and/or assume the
costs of interconnection between, a QREF and the
transmission grid or a distribution network
• Requires NEPCO (and perhaps distribution
licensees) to connect QREFs as a matter of priority
• ERC to establish net metering regime or reduce
wheeling costs
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15. ‫‪Ministry of Energy and Mineral Resources‬‬ ‫وزارة اﻟﻄﺎﻗـــــــــــﺔ واﻟﺜﺮوة اﻟﻤﻌﺪﻧــــــــــــــﻴﺔ‬
‫‪Thank You‬‬
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