Energy

Positioned as a gateway to the Middle East, Jordan is emerging as an ideal location for investment in renewable energy and clean technology.
Jordan is seen to have a strong potential to build upon its comparative advantages in the renewable energy sector given its technically skilled labor, high insulation rates, and very high irradiation levels.

 

Energy Sector

The Kingdom does not have the natural resources of its neighbors and imports 96% of its fuel and energy requirements (about 20 % of the GDP). Therefore, Jordan is emerging as an ideal location for investment in renewable energy and clean technology that offers a starting point for international companies with the intention of regional and/or global expansion.


Sector Overview:

  • Located within world belt, Jordan has one of the highest solar irradiance levels in the world of 4-7kWh/m2 coupled with more than 300 days of sunshine and blessed with relatively moderate temperatures and low dust and humidity levels.
  • Studies show a hydro resource potential of 400-800 MW could be exploited from the 400-meter elevation difference between Red and Dead Seas through the proposed Red-Dead Sea Canal project.
  • Jordan has significant wind energy resources that could be exploited for power generation. Wind speeds reach an average of 7 meters/sec in several locations and are up to 11.5 meters per second in hilly areas.
  • Jordan possesses one of the largest oil shale reserves in the world with total deposits estimated at 70 billion tons. These deposits underlie more than 60% of Jordanian territory. Besides, Jordan owns 14 billion tons of spica.
  • According to the Jordanian Atomic Energy Commission, Jordan possesses 2% of the world’s uranium reserves. It is estimated that there are about 65 thousand tons of uranium reserves in the center of the kingdom. It is expected that the rate of production of uranium from the mines of the Central Jordan will be about 2000 tons annually.  
  • Advanced electrical distribution system, with over 99% of its population with access to the grid.
  • Grid connectivity to MENA and Europe regions.
  • The country has developed an Energy Master Plan, mandating that 10% of its energy by 2020 come from renewable resources (1200MW from Wind, 600MW from solar and 20-30MW from waste to energy) to offset the increasing demand for
  • Committed governance and pro-investment Renewable Energy and Energy Efficiency Law
  • Among the highest engineers per capita ratios in the world; 1 engineer per 83 inhabitants in 2020.
  • An attractive incentives package: From total income tax exemption in Free zones for export to reduced corporate income tax of 5% in development zones and exemption of customs duties and sales tax. For more information click here.

 

Business Opportunities:

  • Utilizing oil shale
  • Manufacturing Solar Cells, Photovoltaic cells, wind turbines and solar reflectors.
  • Generating electric power from solar, wind, and geothermal energy.
  • Wind turbines and PV inverters
  • Turnkey Projects
  • Water Purification and Treatment Plants
  • Desalination projects
  • Water Desalination
  • Waste Treatment and Recycling
  • Waste Oils Recycling.

 

Related Graphs:

Jordanian Power Sector(2015)

Installed capacity                                                                       4.3 GW

Peak demand                                                                              3.1 GW

Peak demand growth                                                                 6.9%

Installed capacity requirement by 2020                                    6.8 GW

 

 

 

Retail Price Levels (2016)

 

 

 

                                                          

 

US cents

Local Currency(Fils)

Power

MIN

5/kWh

33/kWh

MAX

37/kWh

265/kWh

Fuel

Petrol

89/litre

630/liter

water

MIN

11/m3

80/m3

MAX

270/m3

1,920/m3

 

energy-graph-1
Source: Ministry of Energy and Mineral Resources Report – 2015

 

Electricity Demand Forecast in the Interconnected System

Year

MAX. Demand*

Electrical Energy Generated

MW

Growth (%)

GWh

Growth (%)

2015

3200

6.2

18600

4.0

2016

3390

5.9

19640

5.6

2015

3596

6.1

20800

5.9

2018

3810

6.0

22090

6.2

2019

4045

6.2

23510

6.4

2020

4300

6.3

25060

6.6

2030

8130

6.6

49290

7.0

           

*Summer Loads.

Source: NEPCO Report 2015