Jordan: Energy Resources
|Energy Consumption||0.31 Quadrillion Btu|
|2-letter ISO code||JO|
|3-letter ISO code||JOR|
|Numeric ISO code||400|
|UN Region||Western Asia|
|Energy Organizations||3 view|
|Research Institutions||1 view|
|CIA World Factbook, Appendix D|
|Wind Potential||0||Area(km²) Class 3-7 Wind at 50m||126||1990||NREL|
|Coal Reserves||Unavailable||Million Short Tons||N/A||2008||EIA|
|Natural Gas Reserves||6,031,000,000||Cubic Meters (cu m)||87||2010||CIA World Factbook|
|Oil Reserves||1,000,000||Barrels (bbl)||97||2010||CIA World Factbook|
Energy Maps featuring Jordan
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Policy and Regulatory Overview 
Access to electricity across Jordan is 99%. The main generating stations are connected via 132 kV and 400 kV lines, which transmit to load centres in the country and the distribution network. The exports system consists of a 230 kV line with Syria, and a 400 kV line with Egypt.
Pursuant to the General Electricity Law No (64) of 2002, NEPCO is responsible for conducting Planning Studies for the future expansions of Transmission and Generation Network, in addition to ensure sufficient generation capacity reserve margin to cover Electrical Energy Demand.Factors for a viable energy plan in Jordan include: - Study and overcome the barriers to the introduction and wider utilization of RE sources in Jordan. - Introduction of incentives to assist the wider utilization of RE sources in Jordan. These incentives will be in the form of low cost financing, tax relief, etc. One of the most important areas is the incentives and regulations to increase utilization and installation of solar water heaters and passive solar technologies in new Jordanian houses. - Effective activation of NERC. - Introduction of regulations and codes of practice and enforcing them.
In 1992, a special task force was appointed by the Minister of Energy to study the economics of RE-based electricity generation. Conclusions were that wind energy was marginally feasible in comparison with conventional energy. The task force recommended that the Jordanian Government should subsidise wind power but this has so far not been agreed. Without such a framework, NEPCO is unwilling to pay a premium price for RE electricity as it fears that investors in conventional power plants would insist on non-discriminatory treatment. This price question could limit RE projects other than those financed by foreign donors and joint implementation, e.g. CO2 reduction projects.
Total Installed Electricity Capacity (2010): 3,069 MWThe total amount of generated electricity in the Kingdom reached 14,683 GWh in 2010, with a growth rate of 3.3%.Total Primary Energy Supply (2009): 7,451 ktoeOil: 56.7%Natural Gas: 41.5%Geothermal/Solar/Wind: 1.6%Hydro: 0.1%Comb. Renew. & Waste: 0.1%
ERC’s objective includes ensuring the rights of consumers and to resolve complaints between the consumer and electricity companies, ensuring that the undertakings operating in the sector shall comply with applicable environment protection standards and general public safety conditions enforced in the country, and ensuring that the regulation of the sector is fair and balanced to consumers, licensees, investor and other stakeholders.
Despite the unbundled nature of the Jordanian power market, all three utilities are still wholly owned by the state. EDCO is owned by the government as an interim to privatisation.
The total amount of the consumed energy per capita for 2010 was 2114 KWh/Capita compared to 2006 KWh/Capita in 2009 with a growth rate of 5.38%. Household consumption was 33% of total consumption, the industrial sector was 26%, the commercial was 16%, water pumping was 14.3%, governmental was 7%, streets lighting was 2.4% and others was 0.8%. Based on 2009 figures, is it estimated that by implementing energy efficiency measures in industry, as well as policies to promote sustainable energy uptake, national energy demand can be reduced by up to 20%.The total energy exported by Jordan to Syria, Egypt, Jericho, and the Iraqi Trabeel borders point reached 58 GWh. So, the total available energy for the local consumption was 15,295 GWh with a growth rate of 5.8 %.
The electrical loss in the transmission system in 2010 was 288 GWh, with a 1.98% out of the overall supplied electrical energy to the transmission network. This is considered a good quality percentage and less than the set percentage according to performance standard code which is 3.5%. In the field of Energy losses on distribution Network, the amount of Energy losses for 2010 was 1631 GWh compared to 1655 GWh in 2009 with a growth rate reduction of 1.45%.It is expected that primary energy consumption will grow at a rate of 4–5%. Future oil prices will have an effect on the Jordanian economy, and hence the energy demand of the country.Electricity consumption is predicted to grow at a high rate of 6%, with a peak demand of 1800MW in 2010.
The National Energy Research Council (NERC, http://www.nerc.gov.jo/), managed by a board of directors headed by the MEMR and coming under the supervision of the Higher Council for Science and Technology (HCST).
The electricity sector in Jordan includes eight working utilities. There are three companies in distribution. Jordanian Electric Power Company (JEPCO) is a private company working under concession agreement for middle areas of Jordan and it should be licensed in the year 2012. Electricity Distribution Company (EDCO, http://www.edco.jo/) was established in 1999, and is responsible for distributing electricity in the southern and eastern areas of the country. It was privatized and licensed in 2008 when the government sold its share (100 %), then returned back to the government in 2011. Irbid District Electricity Company (IDECO, www.ideco.com.jo/) was established in 1957 as a private company and is responsible for distributing electricity at northern part of Jordan. It was privatized and licensed in 2008 when the government sold its share (55.4 %), then returned back to the government in 2011. In transmission, a wholly government-owned company, National Electric Power Company (NEPCO, http://www.nepco.com.jo/) is responsible for transmission network, bulk supply and system operation. In generation, there are four companies. Central Electricity Generating Company (CEGCO, http://www.cegco.com.jo), established in 1997, has a nominal capacity of around 1669 MW. Samra Electric Power Generating Company (SEPGCo, www.sepgco.co.jo/) was established by the government in 2004 with a nominal capacity of around 880 MW. AES Jordan Company as IPP1 is a project company between AES Oasis Ltd. and Mitsui & Co. and has a combined cycle with a nominal capacity of 380 MW. Qatraneh Electric Power Company (www.xenel.com/qatrana.asp) as IPP2 is the consortium of Korea Electric Power Corporation and Xenel Industries Ltd., which was declared first-ranked bidder among a group of five international bidders in 2008. It has a combined cycle with a nominal capacity of 380 MW.The liquid fuels market is owned by the state-controlled National Petroleum Company (NPC, http://www.npc.com.jo/), responsible for exploration of oil and gas, and the private Jordan Petroleum Refinery Company (JOPETROL, www.jopetrol.com.jo/), responsible for refining. The NPC was incorporated in 1995. JOPETROL was established in 1952 and is the sole provider of all petroleum products for the local market while being the only refinery in Jordan.
Degree of independence
According ERC, ERC is an independent commission, enjoys financial and administrative autonomy and is linked directly to the Prime Minister.
RE resource surveys, such as wind atlases, solar intensity studies, etc., have already been undertaken in Jordan.After the issuance of the Renewable Energy and Efficiency Law No. (3) of 2010, MEMR with the coordination of ERC and NEPCO had assigned a group of consulting firms to study the reality of renewable energy market in Jordan. This study is to be funded by GEF (Global Environmental Facility) passing through the World Bank and under the wind energy stimulation program in Jordan. This study will cover:Indicative tariff prices assessment for renewable energy projects.Enhancing and evaluating legal, regulating and institutional framework to develop renewable energy resources.Concluding the technical requirements for interconnecting the renewable energy projects into the electrical grid.
Jordan implemented a National Energy Efficiency Strategy for 2005-2020 in 2005. The strategy contains several renewable energy generation targets since 2007. It targets 7% of Jordan’s energy mix to come from renewable energy sources by 2015 and 10% by 2020. It also contains measures including income tax exemption, removal of oil and electricity price subsidies, grants and loans, tax reduction, appliance labelling, and energy audits.The Jordanian Government launched a gradual removal of subsidies for gasoline, diesel, fuel oil and kerosene in 2005. In February 2008, oil product prices were fully liberalised stimulating a market response on both improving energy efficiency and increasing the use of renewable energy, and more importantly, supporting a broader reform to make the overall economy more efficient and attract foreign investment.The Renewable Energy and Energy Efficiency Law 3 was enacted by the Ministry of Energy and Mineral Resources in 2010 in order to provide the government with suitable tools to reach the National Energy Efficiency Strategy targets, including the Jordan Renewable Energy and Energy Efficiency Fund (JREEEF). The Fund will be financed by national and international institutions, and be financially and administratively independent. The Fund provides renewable energy subsidies to privately owned and operated facilities, interest rate subsidies on commercial loans, a Public Equity Fund to support the deployment of private investment onto the sector, a renewable energy guarantee facility to ease credit access for energy efficiency and renewable energy project developers and research, and technical cooperation grants for targeted programmes and feasibility studies.A uniform electricity tariff system was introduced in 1984, using Long Run Marginal Cost (LRMC) to establish the rates that each customer class should be charged. The large industries get their supply directly from the 132 kV network. The maximum demand penalty is US$3.48/installed kW/ month and quantity charges are from US$0.0465 to 0.0682/consumed kWh.MEMR’s (the Ministry for Energy and Mineral Resources) policy objectives include promoting energy saving and demand side management strategies by:- Implementing economic pricing, e.g. by eliminating energy subsidies.- Developing indigenous energy resources by promoting exploration for fossil-fuel by cooperation with international oil companies and, harnessing indigenous RE sources by means of foreign capital.
Jordanian net energy source imports (2007): 7,343 ktoeCrude oil: 4,043 ktoePetroleum products: 1,041 ktoeGas: 2,241 ktoeComb. Renew & Waste: 1 ktoeElectricity: 17 ktoe96% of total primary energy supply is imports and Jordan is almost totally dependent on imported oil. Domestic energy resources, including oil and gas, cover only 3–4% of the country’s energy needs. Jordan spends more than 7.5% of its national income on the purchase of energy.Jordan imports the majority of its oil from Saudi Arabia, in addition to 10,000 bbl/d from Iraq. The country previously imported 80% of its gas needs from Egypt to generate electricity. The continued disruption of Egypt's natural gas supply, caused by bombings targeting the gas pipeline to Jordan in Egyptian territory, resulted in a 64% drop in the gas supply and a marked increase in the cost of energy imports in 2011. Jordan is therefore seeking to increase the oil imports from Iraq and to import oil from the Gulf states and Saudi Arabia.
Role of the government
The Jordanian Government follows a policy of setting retail oil and petroleum prices. It also sets the transfer price for crude oil retroactively and derives an implicit tax for each product, based on the difference between the retail price and the full production and distribution costs.The Ministry of Energy and Mineral Resources (MEMR, www.memr.gov.jo) is responsible for policy making in the energy sector.The Ministry of Planning (MOP) is responsible for securing external technical assistance for RE sources. It is also responsible for preparing Jordan’s 5-year plans. All donor activity is channelled through MOP.
The Renewable Energy and Energy Efficiency Law 2010 (http://www.memr.gov.jo/Portals/0/Renewable%20Energy%20Law%20Translation.pdf ) stipulates a number of measures for the utilisation of renewable energy in Jordan, including resource potential assessments, as well as financing measures such as subsidies to promote increased market share of renewable energy.
Issues include:The structure of pricing policies for different types of energy, e.g. energy subsidies and taxation rates.Institutional and financial standing of the energy enterprises, andImplementing energy savings and environmental-protection measures.
Electricity Regulatory Commission (ERC, www.erc.gov.jo) was established by means of the Temporary General Electricity Law No. (64) of 2002 and a council of commissioners was appointed on 15/10/2005, in accordance to the provision of both Articles (8 &12) of the Temporary General Electricity Law No. (64) of 2002 and its amendments, along with the Cabinet’s resolution that was taken in a session held on 4/10/2005.
Solar energyAn ambitious project to generate electricity from solar energy in a 30MW thermal power station is under study, together with the European consortium Pheobus. Average insolation across the country is 6.3 kWh/m2/day, indicating good potential. Solar energy is mainly used in Jordan for domestic solar water heating (about 30% of the houses); and 100 PV systems are used in remote areas throughout the country. A viability of solar PV study using a 5 MW grid-connected solar PV power plant found that the global solar radiation on horizontal surface varied between 1.51 and 2.46 MWh/m2/year with an overall mean value of 2.01 MWh/m2/year, with about 3311 sunshine hours annually. The annual electricity production of the proposed plant varied depending on the location between 6.886 and 11.919 GWh/year, with a mean value of 9.46 GWh/year. Taking into consideration of economic feasibility, Tafila and Karak are found to be the most suitable sites for the solar photovoltaic power plant’s development.Wind energyWind atlases show areas that have potential namely in the north, with medium annual wind speeds of 6.5 m/s, In the south the National Energy Research Centre (NERC) indicates that Al-Fujaja is the most promising site. Another study showed that the potential of wind energy is acceptable for most of the selected locations as the maximum wind speed for most selected sites is greater than 3m/s. Ras-Muneef gained the highest rank in wind energy potential followed by Aqaba and South-Azarq.Biomass energyBiomass has a low potential in Jordan, mainly due to the arid conditions in the country. It has been estimated that animal and solid wastes represent an energy potential of about 100 ktoe/year, but of rather difficult development potential due mainly to dispersion. An estimation of energy potential from solid waste from sheep, cows and hens and organic waste from olive mills indicated that the total heating value of these wastes was 6600 million MJ assuming an overall waste collection efficiency of 70%. This quantity is equivalent to 157 thousand tons of oil equivalent (toe), representing 84% of Jordan’s local crude oil and natural gas production. However, it only represents 2% of the total primary energy consumption of 7187 thousand toe. Considering the costs of collecting these wastes from scattered farms and olive mills in the country, decentralized collection and processing of these wastes for energy recovery is desirable.Jordan has adopted a special program for Bio-energy by which pre-feasibility studies for the utilization of Municipal Solid Wastes for electricity generation have been prepared since 1993, resulting in the biogas project of the Jordan Biogas Company (JBCO) with a capacity to produce up to 5 MW of electricity. The Jordan Biogas company (owned equally by CEGCO and Greater Amman Municipality) has continued to work on the organic waste Treatment at the Rusaifa waste land fill. The volume of the solid and liquid waste treated in 2007 reached around 5440 tons, and the amount of electricity generated was 9,494 MWh, the plant managed to prevent since it has been established 27,7 million m3 of methane gas.Geothermal energyStudies by the Natural Resources Authority have found medium- and low- grade geothermal waters along the Dead Sea rift. Many small geothermal resources are also in use in aquaculture. An updated assessment of geothermal energy showed that Jordan has enormous underground energy resources in many parts of the country in the form of thermal underground hot water (wells and thermal springs), having a temperature ranging from 20 °C to 62 °C. It was also found that the installed capacity of geothermal energy is 153.3 MWt and the annual energy supply potential is 1540 TJ/year in the form of domestic hot water for bathing and swimming, giving an overall capacity factor of 0.42. Possible future applications of geothermal energy were found to be absorption refrigeration to preserve fruit and vegetables or freeze fish and meat, as well as fish farming and greenhouse heating.HydropowerHydropower resources are two installed generation facilities with a combined capacity of 7 MW.
- Jordan-The World Bank Partnership for Market Readiness (PMR)
- Jordan-Green Growth Planning
- Jordan-UNEP Green Economy Advisory Services
- Jordan-Clean Technology Fund (CTF)
- MENA-GTZ EERE Regional Center
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- Nationally Appropriate Mitigation Actions
- Copenhagen Accord NAMA Submissions Implications for the Transport Sector
- Increasing the Competitiveness of Small and Medium-sized Enterprises Through the Use of Environmentally Sound Technologies
- Best Practices and Tools for Large-scale Deployment of Renewable Energy and Energy Efficiency Techniques
3 Energy Organizations
2 Clean Energy Companies
1 Research Institutions