Jordan Renewable Energy and Energy Efficiency Fund (JREEEF)

 

Jordan Renewable Energy and Energy Efficiency Fund (JREEEF) was created in 2012 by the EE and RE Law N°13/2012. The Fund is established according to the By-Law No. 49/2015 as an entity under the Ministry of Energy and Mineral Resources (MEMR). The basic purpose of JREEEF is providing the necessary funding for the deployment of renewable energy sources and the rationalization of energy consumption including small renewable energy facilities. It supports any program and financial mechanisms allowing the RE and EE users and investors to access financing from banks, local and international financial institutions.

The main JREEEF objectives are to support government in reducing the financial burden on consumers and national economy resulting from energy imports and subsidies to the energy sector. In addition, the fund aims to promote the development of a domestic industry as well as open up new markets. A set of financial and technical support products was developed including revolving credit, grants, loan guarantees, technical support and equity financing as summarized.

JREEEF focuses on funding decentralized renewable energy systems and has programs covering the following sectors:
1. Schools program: King Abdullah’s initiative for heating schools, implementing energy efficiency and renewable energy actions.
2. Household program: including Solar Water Heater (SWH) & Solar PV systems
3. Public buildings: conducting the energy audits in the governmental buildings.
4. Worship places: installation of solar PV systems for worship places including mosques and churches.
5. Small and Medium Enterprises (SME’s): this includes EE & RE actions for the Industrial, hotels and agriculture sector.
6. Awareness and capacity building programs.

In order to implement these programs, JREEEF in collaboration with several development partners, pursues a number of funding mechanisms including financing programs developed with the support of the Central Bank in cooperation with commercial banks and Jordanian companies. To guarantee loans and to provide the necessary financing for enterprise projects and factories at a zero interest rate, the fund also provides loan guarantee services on behalf of these institutions.