Energy

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

Jordan imports 95%  of its fuel and energy requirements, the cost of consumed Energy 14.1% of the total imports and 7.0% of the GDP in 2016, Therefore, the country  is emerging as an ideal location for investment in renewable energy and clean technology where it  offers a starting point for international companies with the intention of regional and/or global expansion.

The development of the renewable energy segment has seen a sharp uptick in recent years ,guided by specific legislation and a spate of new solar and wind projectsunder implemenation.

The kingdom made significant progress on new shale and nuclear power development, where it aims to become a net energy exporter in 2030.

The energy market is now poised to become a leading regional example of non-oil; dieersification ,leading to a positive long-term forecast for the sector.

 

Sector Overview:

 

  • The energy sector strategy for the period 2015-2025 aims to increase the contribution of renewable energy sources in electricity generation for 59%  of total energy by 2023, )13% from oil shale , 8% from Solar, 9% from Wind and 29% from Nuclear Energy(, it also aims at diversification  of  energy sources and reduction of reliance on energy imports and contributes with 10% of an overall energy mix by 2020.
  • Located within world solar belt, Jordan has one of the highest solar irradiance levels in the world of 5-7 kWh/m2 coupled with more than 300 days of sunshine.
  • 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 containing more than 7 billion tons oil These deposits underlie more than 60% of Jordanian territory.
  • According to the  Jordanian Atomic Energy Commission, Jordan possesses 2% of the world’s uranium reserves. It is estimated that there are about  36 thousand tons of uranium reserves in the center of the kingdom.
  • 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 energy.

 

  • 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 .

 

Investment Opportunities:

 

  • Oil and oil shale exploration projects
  • Extraction of shale gas and shale oil at al-Risha and Sarhan fields
  • Manufacturing Solar Cells, Photovoltaic cells, wind turbines and solar reflectors.
  • Generating electric power from solar, wind, and geothermal energy.
  • Wind turbines and PV inverters
  • Water Purification and Treatment Plants
  • Desalination projects
  • Waste Treatment and Recycling
  • Waste Oils Recycling.

Related Graphs:

Jordanian Power Sector(2017)

Installed capacity                                                                       4.6 GW

Peak demand                                                                              3.3 GW

Peak demand growth                                                                 4.9%

Installed capacity requirement by 2025                                   5.6 GW

 

 

Electricity Demand Forecast in the Interconnected System

Year

MAX. Demand*

Electrical Energy Generated

MW

Growth (%)

GWh

Growth (%)

2017

3282

3.7

19957

4.1

2018

3423

4.3

20915

4.8

2019

3570

4.3

21940

4.9

2020

3724

4.3

23037

5.0

2025

4667

4.5

29542

5.1

2030

5816

4.5

37883

5.1

           

*Summer Loads.

Source: NEPCO Report 2016