Solar and Wind Energy Regulations Jordan

Solar and Wind Energy Regulations Jordan

Jordan is among the highest in the world in dependency on foreign energy sources, with 96% of the country’s energy needs coming from imported oil and natural gas from neighboring Middle Eastern countries. This complete reliance on foreign oil imports consumes a significant amount of Jordan’s GDP. This led the country to plan investments of $15 billion in renewable and nuclear energy. To further address these problems, the National Energy Strategy for 2007-2020 was created which projects to boost reliance on domestic energy sources from 4 per cent to 40 per cent by the end of the decade.
Moreover, multiple attacks on the Arab Gas Pipeline from 2011-2014 which supplies 88% of the country’s electricity generation needs – forced the country’s power plants onto diesel and heavy fuel oil, costing the treasury millions of dinars and pushing the national energy bill to record highs, over JD4 billion.

Investment Incentives in Jordan:
The Investment Promotion Law No. 16 of 1995 recognizes the benefits that foreign investment will bring to Jordan, and includes provisions that encourage domestic entrepreneurs as will. Jordan targets the following sectors for favorable tax and customs duty treatment: Industry, Agriculture, Hotels, Hospitals, Maritime transport, Railway, Leisure and Recreational Compounds, Convention and Exhibition Centers. The benefits afforded to investors are considerable.

Investment Guarantees
· Jordan Investment Law affords equal treatment to both Jordanian and non-Jordanian investors. The Law allows the non-Jordanian investor to own any project in full or in part, or to engage in any economic activity in the Kingdom, with the exception of some trade and contracting services which require a Jordanian partner. · Except for participation in public shareholding companies, the investment of the non-Jordanian may not be less than fifty thousand Jordanian Dinars (JD 50.000 or $US 70.000).

· The investor has the right to manage the project in the manner the project in the manner he/she deems appropriate, and through the person(s) chosen by the investor for its management. · The Non-Jordanian investor shall be entitled to remit abroad without delay, ad in a convertible currency, the invested capital together with any returns and profits accrued, the proceeds of liquidation of the investment or the proceeds of the sale of all or part of the project. · Non-Jordanian technicians and administrators working in any project may transfer their salaries and remuneration abroad. · With approval of the investment promotion committee, the investor may re-export the exempted fixed assets. · With approval of the investment promotion committee, the investor may sell the exempted fixed assets or relinquish them to another investor or project not covered by the provisions of this law after paying the fees and taxes due on such fixed assets. · Any investor whose investment is guaranteed by his country or by an official agency thereof, may assign to that country or agency any returns on his investment or other compensation to which he is entitled. · It shall not be permissible to expropriate any project or to subject it to any measures that may lead to expropriation unless such expropriation shall be by way of compulsory purchase for the purpose of the public interest, and in return for just compensation to be paid to the investor. The compensation paid to a non-Jordanian investor in such case shall be in a convertible currency. · Investment disputes between an investor of foreign capital and Jordanian government agencies shall be settled amicably. If no amicable settlement can be reached within a period not exceeding six months, either party may resort to litigation or may refer the dispute to the International Center for the Settlement of Investment Disputes (ICSID).

Wind Energy in Jordan:
As of 2015, there are three operational wind power plants at “Ibrahimyah”, “Hofa” and “Tafila”. The “Ibrahimyah” plant, located approximately 80 km north of Amman, consists of 4 wind turbines with capacity 0.08 MW for each.[1] The “Hofa” plant, located approximately 92 km north of Amman, consists of 5 wind turbines with capacity 0.225 MW for each.[2] The “Tafila” Wind Farm is located in “Tafilah” Governorate in south-west Jordan

Wind Farms In Jordan
Name Capacity ( Megawatt ) Governorate Tafila Wind Farm 117 Tafilah Governorate Hofa 1 Amman Governorate Ibrahimyah 0.32 Amman Governorate

Solar Energy in Jordan:
Jordan relies, almost completely, on imported oil from neighboring countries, which causes a financial burden on the national economy 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.
The annual energy bill has been rapidly increasing over the past few years due to high rates of population and economic growth combined with the consecutive increase in oil price. Consequently, there has been a growing concern about energy consumption and its adverse impact on the economy and environment, with special focus on the industrial sector, because its contribution accounted for about one third of final energy and electricity consumption.
Electricity generation in Jordan has been mainly dependent on natural gas, imported from Egypt Over the past year, and due to repeated interruptions in natural gas supplies, Jordan has been forced to revert to diesel fuel and heavy fuel oil to compensate for gas shortages this resulted in losses of over JD 1030 million for the electricity sector. Therefore, the search for alternative energy sources has become an imminent issue in Jordan.
Renewable energy sources are fundamentally different from fossil fuel or nuclear power plants because of their widespread occurrence and abundance. The primary advantage of many renewable energy sources are their lack of greenhouse gas and other emissions in comparison with fossil fuel combustion. Most of the renewable energy sources do not emit any additional carbon dioxide and do not introduce any risk such as nuclear waste.

PV Projects in Jordan:
 Shams Ma’an Power Generation PSC plans to construct the world’s largest photovoltaic power plant in Ma’an, located in South of Jordan, of 100 MW, which has secured a 2 sq kilometer tract of land to build a photovoltaic (PV) solar energy plant, which will cost around $400 million that expanded to 200 megawatts.
 280 kWp low voltage system is now under construction. It will be installed at Royal Scientific Society, RSS, campus (Amman) and will occupy around 7000 m2 of land area. It is a grant funded by Japanese government.
 1 MWp system will installed at Muwaqar located to east of Amman, by Spanish government through a soft loan.
 PV system of 2 MW peak project was signed recently between Ministry of Energy of Jordan and Spain cost around 7 M EURO (Soft loan).
The plane of Jordan’s government is to increase the renewable energy projects to cover 10% of energy consumption in 2020.

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *