About Jordan’s Clean Energy Sector

Jordan’s clean energy sector is witnessing “great momentum” and has attracted world-renowned companies with decades of experience to invest in such projects in the Kingdom. Jordan ranks second in the region for creating a favorable environment for renewable energy and energy efficiency investments, surpassed only by Morocco in renewables and a thriving Tunisia in energy efficiency. The main accomplishments of Jordan include the implementation of a subsidy removal plan, eliminating all subsidies for oil products; the adoption of the country’s first National Energy Efficiency Action Plan (NEEAP); the tendering and implementation of large scale Renewable Energy projects, the implementation of net-metering an wheeling schemes, and the formulation of minimum energy performance standards for household appliances.

There are four tracks for renewable projects in Jordan: 1) the Direct Proposals Schemes carried out under rounds of competitive bidding through MEMR, 2) the Competitive Bidding Process, 3) EPC Turn-Key projects, and 4) Small-Scale Renewable Energy Schemes (net metering and wheeling).

Jordan is placing heavy emphasis on solar and wind power projects. About 1,335 Megawatts of wind and solar projects are currently under development in Jordan; 400 Megawatts are currently operational. In addition to the project development opportunities announced by the Government of Jordan for centralized power generation, a huge window of opportunity to generate distributed electricity for individual, commercial or industrial use exists under the net-metering and/or the wheeling schemes. Jordan leads the MENA region in net-metering and wheeling; out of the 370 megawatts applied for under the net-metering and wheeling schemes, 84 Megawatts are installed until end of 2016.

Jordan is progressing remarkably on sector enablers such as clean energy financing, training and certification as well as licensing and accreditation of service providers.

The global, regional and local energy sector development carries tremendous opportunities for the private sector to innovate and grow. Understanding the diverse energy demand and consumption within various economic sectors opens the door for new and customized solutions. Eco-cities, energy storage, smart grids, green infrastructure, smart transportation, hybrid systems and green buildings are only a few of many untapped opportunities.

On another end, understanding the impact of energy on other significant sectors such as water, industry, tourism, agriculture, as well as its contribution to CO2 reduction holds huge potential for energy efficiency and renewable energy applications and for attracting additional financing for energy projects. Thus, companies would need to expand their research and development activities to come up with innovative and localized solutions for the increasing energy demand.

It would not be possible for the country to achieve its clean energy objectives, and thus more energy security, without developing a cluster of energy services companies that has the credibility and the ability to implement clean energy projects. Achieving this would require a market-based voluntary accreditation system that would boost the sector’s capabilities and quality of services. EDAMA Association is proud to be a founding member of the Coalition of Energy Service Associations (CESA) which is leading the development and implementation of the first private-sector driven voluntary accreditation framework that enables energy service providers to improve their performance and increase their competitiveness in a fast-growing market.

For more on Jordan’s clean technology sector development efforts, request a copy of EDAMA’s first Clean Tech sector report, please contact us on info@edama.jo.