1. Jordan Electricity Sector and RE Program
Eng. Abdelfattah Aldaradkah
NEPCO’s Managing Director

2. Jordan Overview Total area: 89 213 sq. Km Population: 9.5 million
Sea Port:
Aqaba
Coastline:
26 Km
GDP:
37.52 billion
GDP /capita:
5, USD

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

4. Peak Load and Energy Energy: 6.4% Peak Load: 7.2%1% 5% 6% 7% 5% 6% 0%
15% 5% 4% 7%
14%
-2%
-3%
Energy: %
Peak Load: %
The growth over last 10 years:

5. System Installed Capacity 2017-2024
Peak Load

6. Electricity Sector
The convergence of Jordan’s rising energy consumption trends alongside decreasing security of energy supply is impacting public budget fiscal space for border development goals and country ability to users domestic energy services .
The government has been focusing on adopting several policies to satisfy growing energy demand and decrease its reliance on imported expensive fossil fuels.
The energy demand grew dramatically in the past years in Jordan: 5.5% year for primary energy demand (88% source from oil and oil product) and 7.5% year for electricity. This reflects both population and economic growth.

7. Electricity Sector
Jordan is dependent on fuel imports for about 96% of the energy needs with a substantial impact on the county’s GDP .
Jordan spend more than 17.6 % of its GDP to cover the cost of meeting its energy needs with a large share focused on electricity generation.
The Jordan electricity sector change during the last years. from total governmental owned market to the market where different parts in the value chain has become separated from each other with for examples 3 distribution companies and 6 generation companies .
Stats owned national electric power company NEPCO role in the market is to act as a single buyer.

8. Energy and Mining Regulatory Commission(EMRC)
Electricity Sector
Ministry of Energy &
Mineral Resources
Policy Maker
Energy and Mining Regulatory Commission(EMRC)
Regulator
Generation &
Power
Producers
CEGCO
SEPGCO
IPPS
Interconnection
Transmission
NEPCO
JEPCO
IDECO
EDCO
Distribution

9. 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

10. The Importance Of Renewable energy To Jordan
Highly dependency on imported energy (96%).
Scarcity of local energy and fuel recourses.
High growth of primary energy demand.
Growth of population ( Fertility, Immigration).
Security Supply and Diversity.
Good potential of wind profile regime and high potential of solar radiation.

11. Jordan enjoys world class quality Wind Energy
Wind speed reaching between 7.5 to 11.5 m/s in some places.
Wind projects are now feasible and competitive

12. Jordan enjoys world class quality Solar Energy
High solar radiation figures of – 7 kWh/m2 per day with about 300 sunny days per year.
Jordan future Renewable Energy source is Solar Energy.

13. Direct Proposal
EPC
As a result, many projects are aimed at building solar power and wind power capacities in an effort to the set target of 10% of the country’s primary energy mix by 2020
Wheeling
Net Metering

14. Direct Proposal Legal Framework
In year 2010 Jordan enacted a Renewable Energy Law that provides for the legal framework for the sector.
The Law permits and encourages the exploitation of renewable energy sources at any geographical location in the Kingdom. By allowing for the Direct Proposal Submissions of projects for generating electrical power and connecting to the grid (Ref price list).
The Law provides that the tariff that the project developer sets out in its proposal shall “within an acceptable range according to the Reference Price list”. 
The Reference Price list is prepared and updated by Jordan’s EMRC together with relevant bodies.
Tariff then changed to be competitive but still within updated Reference Price list

15. Net Metering Legal Framework
The Law permits home-produced energy to be sold to grid thereby accelerating the adoption of clean energy technologies at both residential and commercial levels (Net Metering).
Exempting all Renewable Energy and Energy Efficiency Systems and Equipment's from Sales Tax and Custom duties.
The investors can benefit from Jordan Investment Promotion Law and the Development Zones’ corporate tax incentives and customs tax exemptions.

16. Wheeling Legal Framework
The Law permits home-produced energy to be sold to grid thereby in a place and consume instead of it in other place.
Wheeling Charges are applied: 0.6 and 0.9 Cent/ kWh (transmission and distribution networks respectively) and 2.3 % and 6% of the energy is deducted as losses (transmission and distribution networks respectively).
This cause bulk costumers who subsides the Tariff to have this system instead paying electricity to the government (huge financial losses to the government).

17. For Renewables to have the right position within the global Energy Context:
• Stable Regulatory Framework.
• Adequate and Transparent Public Policies and Targets.
• Clear Financial and Support Schemes.
• Well defined Infrastructure Provisions (Lands, Grid connections, etc.)
Stable Electrical Grid.
Bankable Project Agreements.

18. The Project Agreement (PA’s):
Power Purchase Agreement.
Transmission Connection Agreement
(Describe the electrical interconnection for the project into the grid).
Governmental Guarantee Agreement.
Direct Agreements.
(Between Lender Agent and NEPCO to provide step in right for lender in case of Project Company not remedy it is defaults)

19. PA’s are part from tender documents.
There is a room for the Shareholders (Project Company), Lenders, and the Contractor to have their non substantial comments on the PA’s.
GoJ Allowing Negotiation Rounds to the PA’s.

20. Power Purchase Agreement:
Protection for Force Majeure.
Protection for Change in Law.
Tax Exceptions.
Take or pay.
Protection of currency Exchange Rate (JOD VS USD).
Independence Engineer (third party) to accept Commissioning & COD.
Commissioning Energy.
Deemed Energy.
Partial Commissioning.
No penalties in case of late Commercial operation Date (longstop date).
Detailed Technical description, requirements, & schedule.
Sharing the related technical documents and drawings between Parties.
Coordinating committees and meetings between Project Company and NEPCO.

21. Wind Projects Type Round/ Project Name Regime Capacity Status
Tafilla (JWPC)
Direct Proposal
117 MW
Commercially operated on 16th Sep 2015.
Fujaij
(KEPCO)
89.1 MW
PPA is signed and get Financial close
Under construction, COD: 2018
Alrajif
82 MW
KOSPO
50MW
PPA is signed & COD: 2019
Xenel
Alhussein
EPC
80 MW
Commercially operated in 2016.
Mass
100 MW
Shobak

22. Success Story in Renewable Energy

23. RE Installed Capacity in MW RE Installed Capacity in MW
2016
2017
2018
2019
2020
RE Installed Capacity in MW PV
209.8
312.8
647.8
1173.8
1373.8
Wind
197
372.2
616.2
716.2
WtE 40 80
Total
406
509
1,060
1,830
2,170

24. RE Generated Energy in GWh RE Generated Energy in GWh
2016
2017
2018
2019
2020
RE Generated Energy in GWh
Capacity Factor PV
404
603
1,248
2,262
2,648
22% %
2.2%
3.2%
6.5%
11.5%
13.2%
Wind
552
1,043
1,727
2,008
32%
3.0%
2.9%
5.4%
8.8%
10.0%
WtE -
298
596
85%
0.0%
1.5%
Total
957
1,155
2,590
4,287
5,251
5.1%
6.1%
13.4%
21.7%
26.1%
System Consumption GWh
18,588
18,960
19,339
19,726
20,120

25. RE share will exceed 25% in 2020
RE Challenges:
Variability and intermittency in supply according to weather condition.
Uncertainty of energy production forecasting.
Fast ramping, cant followed from conventional units.
Difficulties in balancing between the generation and the load.
Power Quality Problems.
Inflexibility
Curtailed energy is still paid from NEPCO.
RE share will exceed 25% in 2020
All above challenges are maximized when you have high RE share, it is become challenging to manage

26. Action Plan & Solutions: NEPCO has taken real protective action plan
Electrical Battery Storage to be considered in Round 3.
Pump storage under studying.
Electrical Interconnection with gulf countries and Iraq.
Special energy forecasting systems that considering RE will be implemented in the system.

27. Thank You