Smart Power Generation in Jordan, IPP3 and IPP4 Case study. Amani Al-AZZAM NEPCO Energy Forum Muscat-Oman 19-21/May/2015

Electricity Regulatory Electricity Sector Ministry of Energy & Mineral Resources Policy Maker Electricity Regulatory Commission Regulator Generation & Power Producers CEGCO SEPGCO IPPS Interconnection REN IPP’s Transmission NEPCO JEPCO IDECO EDCO Distribution

National Electric Power Company Single Buyer Model NEPCO (System Operator) Generation Companies Electrical Interconnection Principal Consumers Distribution Fuel (Pass through) Fuel cost Regulated Tariff (EMRC) PPAs TCAs Renewable Projects PPAs TCAs

High growth of electricity consumption Jordan, like many other countries in the Middle East has experienced a significant increase of both peak load and annual electricity demand within the last decade due to a strong growth of economy and population. The peak load of Jordan’s electrical system has more than doubled from year 2000 to 2013 , which is equivalent to an average growth rate of 8% per year. The electricity generated per year increased within the same time frame.

High growth of electricity consumption The observed strong escalation of both peak load and generated electricity demand will continue in the coming years. Jordan’s peak load in 2022 will be in the range of 5000 MW with average growth rate of 7% per year for the next 10 years.

Jordan Power System (2014) Peak Load: 3160 MW (2014L2015 Winter Load) Local Generated Energy: 18269 GWh Imported Energy : 435 GWh Exported Energy : 64 GWh Installed Capacity: 4000 MW Transmission Lines Length: 4520 Km.circuit Main Substations Capacity: 11905 MVA Electrification Rate: 100%

Transmission Grid Network Length (Km/Circuit) 132KV Lines: 3103 132KV Cables: 97 400KV: 904

High dependency on imported fuel Jordan imports more that 97% of its energy needs, which accounts for about 20% of total GDP. Electricity sector consumes 42% of total consumed energy. The Jordanian government is facing a fiscal crisis – due to shortage in supplying a gas from Egypt- as it subsidizes more than half the cost of electricity to consumers

Generation Units Existing 2015 650 180 2060 265 150 573 241 4000 Tech. Capacity (MW) Fuel Efficiency Steam 650 NG/HFO 33% 180 HFO 28% CC 2060 NG/LFO 45-48% GT 265 30% 150 LFO 24% IPP3-DE (2014) 573 HFO/NG/LFO 42-44% IPP4-DE (2014) 241 Total 4000   Existing 2015 9 9

Generation Units Committed 70 NG/LFO 45-48% 485 470 OIL SHALE (DB) Tech. Capacity (MW) Fuel Efficiency CCGT/ST (2018) 70 NG/LFO 45-48% CCGT (2017l2018) 485 OS/ST (2018) 470 OIL SHALE (DB) ---- Committed 10 10

Potential of wind and energy in Jordan Renewable energy can contribute to Jordan’s security of supply and reduction of energy imports : High solar index High Wind speed Extensive land areas that can be used for large solar and wind energy at small cost.

Committed Projects Tafila 117 MW King Hussain 65 MW Rajif 83 MW Fujaij 90 MW Kospo 50 MW Xenel 50 MW Delenove 45 MW MDA1 & others 200 MW PV Quwera 65 MW North DP2 200 MW

Future Projects Hareer 100 MW Fujij2 100MW Fujij3 50 MW Waqas 50MW Rweshed 50 MW MDA2 450MW Mafraq 100 MW

Partial unpredictability The unpredictability of RE energy sources creates reliability challenges for utilities seeking to balance power supply and demand across centralized grid networks. stand ready to provide additional Power when RE produce less Maintain reserves that Energy than predicted (10-15 minutes) when RE generate more energy Load to “soak up” excess power The availability of dispatchable than predicted Stand by to balance the system

Does not have penalties for start/stops Why Combustion Engine? Very high Fuel Efficiency More fuel efficient than OCGT Load reduction without Eff. reduction Same as CC Operational Flexibility Fast Start up Does not have penalties for start/stops Multi-fuel operation multi-fuel operation (either gas or other liquid fuels including light and heavy fuel oils) *Flexible energy for efficient and cost effective integration of renewables in power systems, Wartsilla white paper 2013

Average Monthly Load Curve - 2014 July – Dec,2014 (After 850 MW ICEs plants installed): Steam plants and CCGT plants provide stable base load with optimized efficiency Engine plants provide load following capacity with high efficiency Jan – June,2014 ( Before ICEs plants installed): All plants are cycling with low efficiency (sub-optimal)

Daily Load Curve before and after IPP3 & 4 Cycling of CCGT plants Feb - 2014 Feb - 2014 No Cycling of CCGT plants. ICE provide load following. Nov- 2014 Nov- 2014

Average Capacity Factor of IPP 3 & 4 High Efficiency Flexible Capacity Load factor varies from 0-100%

Partial unpredictability The unpredictability of RE energy sources creates reliability challenges for utilities seeking to balance power supply and demand across centralized grid networks. stand ready to provide additional Power when RE produce less Maintain reserves that Energy than predicted (10-15 minutes) when RE generate more energy Load to “soak up” excess power The availability of dispatchable than predicted Stand by to balance the system

Conclusion Around 2000 MW renewable energy will be added to the Jordan grid by 2020. Operating reserves need to be even more high to manage the grid disturbances caused by intermittent generation. IPP3 & IPP4 power plants will be required to cover the widening gap between the demand and supply and to provide reasonable operational reserves. More-over the required fuel to power IPP 3 & 4 will be less in comparison to the other power plants in Jordan IPP3 & 4 are a form of highly flexible and efficient power plants. These power plants will provide provision of flexibility in Jordan to manage the grid disturbances. Additional capacity should be in the form of flexible, efficient, modular plants so as to balance RE intermittency and to provide operating reserves.

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