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Renewable Energy Program in Jordan

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Presentation on theme: "Renewable Energy Program in Jordan"— Presentation transcript:

1 Renewable Energy Program in Jordan

2 Jordan enjoys world class quality Solar and Wind Energy
Wind speed reaching between 7.5 to 11.5 m/s in some places. Wind projects are now feasible and competitive without further concessional support 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. Ma’an & Quweira

3 Jordan Energy Strategy
The Energy Mix in Jordan (2010 – 2020) Imported Electricity 1% Renewable 2% 2010 N. Gas 36% Oil Products 61% 2015 Domestic Resources 3%, Imported 97% 2020 Imported Electricity 2% Oil Shale 11% Renewable7% Oil Shale 14% Imported Electricity 1% Renewable 10% Oil Products 40% N. Gas 29% N. Gas 29% Oil Products 51% Nuclear 6% Domestic Resources 39%, Imported 61% Domestic Resources 25%, Imported 75%

4 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.)

5 Jordan is at the right path
A target of 10% renewable energy input into the energy mix by 2020 is set in the National Energy Strategy, mainly aiming for about 1000MW of Wind and 600MW Solar.

6 Regulatory Framework o The Renewable Energy and Energy Efficiency Law was passed as a permanent Law in April 2012. o This law, the first in the region, allows investors to identify and develop grid-connected electricity production projects through the so called unsolicited or direct proposal submission. o the Jordan Renewable Energy and Energy Efficiency Fund is established, which aims to channel financial resources to that end.

7 o A well-founded reference price list (ceiling prices) for different Renewable technologies was set by the ERC . Net- Metering for small RE Systems (Roof Tops) with Fixed Purchase Prices for Excess Power, Tax Incentive regime , a By-Law was issued on Tax exemptions for RE and EE systems and Equipment. Grid Expansion and Reinforcement Plans are ongoing

8 Reference Price List RE source Tariff Fills/ kWh Wind Energy 80
Solar Energy (CSP) 135 PV 100 Bio mass 90 Bio gas 60

9 Renewable Energy Development Schemes
The Government is currently engaged with a three-tracks approach to develop RE Projects as follows: a. Direct Proposals b. Competitive Bidding c. EPC Turn-Key

10 Direct Proposals Approach
Round 1: (64) Expressions of Interest were received in 2012 and (30) MOUs were signed (total Capacity of 850 MW split between Solar and Wind). (12) PV solar proposals were received in March 2013 with total capacity of (200) MW. PPAs signed in March 2014, currently under Financial Close. The PPA for the first Wind Direct Proposal submission project for 117 MW at Tafila was signed in November 2013, currently under construction. Wind Proposals of this round to be received end of May 2014

11 Round 2: Launched in August 2013, 83 Applications were received on 14 November 2013. (45) MOUs were signed with short listed PV bidders, and the deadline for proposals submission is 6 July 2014. (6) bidders were shortlisted for Wind projects and the MOUs are under signing. About ( ) MW is allocated for this round Round 3: Launched beginning February The deadline for submission extended to 14 August 2014. About 400 MW estimated total capacity for this round

12 Competitive Bidding Process
o The first ranked bidder for the (90) MW IPP Wind Energy Project at Fujeij was announced, currently under final negotiation. o Several projects are under investigation by MEMR to be tendered on public lands on due time, pending on grid capacity availability.

13 EPC Turn-Key approach o (65-75) MW Wind project at Maan, funded through a Grant from the Kuwaiti Fund (USD 150 million). Currently under award to a Spanish contractor, and to be operational by end 2015. o (65-75MW) Solar PV Project at Quweira/Aqaba, funded through a Grant from Abu Dhabi Fund (USD 150 million). (9) proposals were received by the deadline on April 6, 2014, currently under evaluation and to be operational by mid 2015.

14 Conclusion Jordan has laid down the necessary Policy and Regulatory frameworks for Renewable Energy, and is ready now to attract and receive commercial investments, One stop shop at MEMR is currently under process by amending the RE Law. Template contractual documents (mainly PPAs) and Instructions for developing RE projects do exist.

15 Thank You


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