IEEJ:August 2015

Ministry of Energy and Mineral Resources‫ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‬Energy Policy
Country Report/ Jordan‫ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‬Dr. Julia Sahawneh
Planning and International Cooperation Directorate / Investment Division(julia.sahawneh@nra.gov.jo)Japan
2nd of June 2015

Outline
•
•
•
•
•
•

JordanChallenges facing the Energy Sector in Jordan
The effects of the energy crisis in Jordan
Jordan National Energy Strategy Plan (2007-2020)
Energy Resources in Jordan
Jordan Energy Policy• Short-Term Solutions• Medium and Long Term Solutions• Primary energy mix according to the National Energy Strategy
2007-20202Jordan• Jordan•••••

Challenges facing the Energy Sector in Jordan
The effects of the energy crisis in Jordan
Jordan National Energy Strategy Plan (2007-2020)
Energy Resources in Jordan
Jordan Energy Policy• Short-Term Solutions• Medium and Long Term Solutions• Primary energy mix according to the National Energy Strategy
2007-2020

3JordanJORDANJordanTotal Population of Jordan is 6.653.000 (according to 2014 estimates) in addition to thatJordan hosted 2.070.973 Palestinian refugees (UNRWA); 2.5 million refugees from Syria;750.000 refugees from Iraq; 1 million labors from Egypt & 700.000 labors from Sri Lanka &others.
Total area

89.318 sq. km, of which 88.778 sq. km is land area

GDP at current price35.877 million US$

GDP per Capita

5.395 US$

Energy Consumption /Capita

1272 kgoe

Electricity consumption/Capita

2318 KWh

Population under supply

99.9%

Primary energy consumption

8461 Thousand Toe

Final energy consumption

5507 Thousand Toe

Electricity generation

16595 GWh (2012); 17261 GWh (2013)

Electricity Consumption

15418 GWh

Local crude oil and oil products production 97 Thousand Toe
Cost of Consumed Energy
5

6.3 billion US$Jordan• Jordan• Challenges facing the Energy Sector in Jordan••••

The effects of the energy crisis in Jordan
Jordan National Energy Strategy Plan (2007-2020)
Energy Resources in Jordan
Jordan Energy Policy• Short-Term Solutions• Medium and Long Term Solutions• Primary energy mix according to the National Energy Strategy
2007-2020

6JordanChallenges facing the Energy Sector in Jordan
1. Jordan is lacking conventional sources of energy; the country
needs to import almost (97%) of its fuel needs.

7Jordan2. Jordan witnesses high growth of energy demand.
PeriodElectricity Demand Growth(%)

Primary Energy Demand Growth(%)

2008-2020

7.4

5.5

Electricity Generated Capacity tomeet Future Demand.

Med. Demand

7000

7.4%

5.5%

5000
4000
3000

1000 TOE

Capacity (MW)

6000

2000
1000
0
2007

2009

2011

2013

2015

2017

2019

Year
Additional units+ Current units+ Interconnection
Current Units
Max. Peak ( Med. Sen.)
Max. Peak ( Med. Sen.)+10%

The additional generated capacity needed up
to 2020 Is 4000 MW, an average of 300 MW
per year.
8Growth of Primary Energy Demand

16000
15000
14000
13000
12000
11000
10000
9000
8000
7000
6000
2007

2009

2011

2013

2015

2017

2019

YearThe expected demand for primary energy amounts
is 15 million tons of oil equivalent in 2020
compared to 7.5 million tons of oil equivalent in2008.
Jordan3. The cost of consumed energy is steadily increasing.
In 2014: it reached 4480 million JD (6.3 billion US$),accounting for 18% of GDP.

9YearMillion
JD

2010

2600

2011

4036

2012

4600

2013

4076

2014

4480

Jordan• Jordan• Challenges facing the Energy Sector in Jordan• The effects of the energy crisis in Jordan• Jordan National Energy Strategy Plan (2007-2020)• Energy Resources in Jordan• Jordan Energy Policy• Short-Term Solutions• Medium and Long Term Solutions• Primary energy mix according to the National Energy Strategy
2007-2020

10JordanThe effects of the energy crisis in Jordan
1.

The heavy burden of energy costs on the Jordanian economy.
($1 increase in barrel of oil internationally reflects the Jordanian
economy about US$40 million a year).

2.

Imported energy consumes 28% of the GDP value (accounted toUS$ 6.3 billion in 2014).

3.

Government subsidy for petroleum products and electricity
reached nearly US$ 2.5 billion.

4.

The provision of necessary funding for investment in thedevelopment of energy industry and its installations within timeframeworks to meet energy needs (Jordan needs US$18 Billion
investment in the energy sector by the end of 2020).

5.

Energy crisis has negative impact on social life. (Poverty,unemployment, poor income distribution and lack of sense ofsocial justice).

• Jordan• Challenges facing the Energy Sector in Jordan• The effects of the energy crisis in Jordan• Jordan National Energy Strategy Plan (2007-2020)• Energy Resources in Jordan• Jordan Energy Policy• Short-Term Solutions• Medium and Long Term Solutions• Primary energy mix according to the National Energy Strategy
2007-2020

12JordanJordan National Energy Strategy Plan (2007-2020)
The National Energy Strategy 2007-2020 was adopted to face energy
challenges that has set as following: Diversifying the energy resources.
 Increasing the share of the local energy in the energy mix.
 Reducing the dependency on imported oil.
 Enhancing environmental protection.
The main goals of the National Energy Strategy will be achieved through: Maximizing the utilization of domestic resources (Oil shale,natural gas, etc.)
 Expanding the development of renewable energy projects
 Generating electricity from nuclear energy
13Jordan••••

JordanChallenges facing the Energy Sector in Jordan
The effects of the energy crisis in Jordan
Jordan National Energy Strategy Plan (2007-2020)• Energy Resources in Jordan• Jordan Energy Policy• Short-Term Solutions• Medium and Long Term Solutions• Primary energy mix according to the National Energy Strategy
2007-202014

JordanEnergy Resources in Jordan
Jordan lacks conventional energy resources and imports
the vast majority of its energy.
1. Jordan has potential of Oil and Gas exploration but has
not been explored yet.
2. Jordan has a huge potential of energy resources such as Oil
Shale and Uranium
3. Jordan has a huge potential of Renewable Energyutilization
 mainly wind and solar energy;
 Pilot projects of biogas and Limited and infeasible (in terms of generatingelectricity) geothermal energy resources.
15JordanOil and Gas• Small deposits of noncommercial Crude Oil werediscovered in Jordan, produces
20 barrels/day only.
• Currently, Jordan produces 15
million cubic feet of gas daily
from Al Risha field/ NE ofJordan. This gas used to run
the 150-MW Al-Risha gas
turbine station.
• The Government is searchingfor more crude oil and naturalgas.
• Jordan is divided into nine
exploration blocks as
displayed in the Figure.
16

JordanOil Shale• Jordan possesses a very large energy
resource in its vast reserves of oil shale; itranked as the forth country in the world.
• The Government through the Ministry ofEnergy and Mineral Resources is currently
engaged with a three-track approach todeal with Oil Shale development:(1) Deep Oil Shale Reserves(2) Surface Reserves and(3) Direct burning of oil shale for Power
Generation

17JordanCurrent status of oil shale investment projects•

Concession Agreements

The GOJ represented by MEMR signed threeConcession Agreements. These companies are:
•In-Situ Process with JOSCo (Shell Project)•Oil shale Surface Retorting with Jordan Oil Shale
Energy (JOSE)•Oil shale Surface Retorting with Karak International
Oil psc (KIO)•Saudi Arabian Corporation for Oil Shale (SACOS)•Memoranda of Understanding

The GoJ represented by MEMR signed seven
Memoranda of Understanding with national andinternational companies who are interested in the oilshale mining and development investment, in different
areas of the Kingdom. These companies are:
1. Aqaba Petroleum Company for Oil Shale ( APCO )2. National Company for the production of oil andelectric power from Jordanian oil shale (JOSECO)
3. Al-Lajjun Company
4. Global Oil Shale Holdings (GOSH)
5. Whitehorn Resources Inc.
6. Fushun Mining Group7. Al Qamar for Energy and Infra Structure
18JordanUranium• Uranium is not yet used inJordan to produce electricity.
The Jordanian Atomic Energy
Commission (JAEC) wasestablished in 2008 in order tointroduce the peaceful uses ofnuclear energy and radiation
to the kingdom anddeveloping its sustainable useto generate electricity.
• Project Development Agreement (PDA) was signed by JAEC andRasatom Overseas (RAOS) and approved by the Cabinet of
Ministers of Jordan on September 22nd, 2014, to generate a NetOutput of 2 X 1000 MW.
19JordanRenewable Energy
 Jordan has great potential sources of renewable energies with particularreference to the solar energy and wind energy.
 A target of 10% renewable energy input into the energy mix by 2020 is set in
the National Energy Strategy, mainly aiming for about 1200MW of Wind and600MW Solar.
 To achieve this target:• The Renewable Energy and Energy Efficiency Law passed as a permanent Law in2012 and amended in 2014.
• This law, the first in the region, allows investors to identify and develop gridconnected electricity production projects through the so called unsolicited ordirect proposal submission.
• The Jordan Renewable Energy and Energy Efficiency Fund has been established,which aims to channel financial resources to that end.
• A well-founded reference price list (ceiling prices) for different Renewable
technologies was set by the EMRC .
• 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.
20JordanSOLAR ENERGY

Under Process

Under Execution

Jordan is located within the Sunbelt where theintensity of direct solar radiation is (5-7) kWh/m².

21• Two Solar PV projects with total capacity of (5)MW have finished construction at Azraq incooperation with the Spanish Government, andcurrently under commissioning (EPC basis).
• Solar PV project of (10) MW capacity in Mafraq
area to be connected to the distribution network, tobe operational in July 2015 (BOO basis).
• 12 PV projects agreements of solar cells to generate electricity, with totalcapacity of (200) MW mostly in Ma'an area was signed between the GOJ andprivate companies / Direct Proposal Submissions – Stage I, to be operationalat the beginning of 2016 (BOO basis).
• 4 Solar PV projects with total capacity of (200) MW/ Direct Proposal
Submissions – Stage II, proposals under evaluation (BOO basis).
• Solar PV Project at Quweira/Aqaba (65-75 MW), funded through the Gulf
Grant (Abu Dhabi Fund, USD 150 million), under re-bidding process.
JordanWIND ENERGYWind speed in specific areas ranges between(7-9) m/s; the data is promising to utilize
renewable energy to generate electricity in
Jordan.

Under Process

Under Execution

Two commercial windprogress as follows:22

projectsin

I. Tafila wind project of (117) MW
capacity, to be operational in
September 2015 (BOO basis); and205 JD millions of investment withJordan Wind Project Company(JWPC).
II. as well as (66) MW capacity Wind
project at Ma’an, funded through theGulf Grant (the Kuwaiti Fund, USD
150 million), to be commissioned by
the end of 2015 and operational by
March 2016 (EPC basis).
I.

Open Plain

Hills>7.5 m/s>11.5 m/s

6.5-7.5m/s
5.5-6.5m/s
4.6-5.5m/s< 4.5 m/s

10-11.5m/s
8.6-10m/s
7-8.6 m/s
< 7.0 m/s

4 Wind projects with total capacity of (230) MW capacity/ Direct Proposal
Submissions – Stage I, under negotiation (BOO basis).

II. Wind project at Fujeij of (90) MW capacity/ Direct Proposal Submission, undernegotiation (BOO basis).
JordanBiomass/Biogas/Biofuels
Most viable resource for biogas in Jordan is municipal
solid waste.
 Resources: Resources are available.
 The amount of municipal solid waste is fast growing.
 Past & on-going activities:
 A pilot plant using municipal solid waste of 3.5 MW in
operation since 2000.
 Pilot projects for the cultivation of Jatropha curcas
underway throughout the Kingdom to help identify themost suitable areas and the feasibility of large scalecultivation (Biofuels production).
23

JordanGeothermal Energy
Geothermal• Hot and geothermal springs do exist, found to have low enthalpy andcould not support commercial power development (WestJapan Engineering Consultants, Inc. 2007).
• Deep drilling is required for further investigations and feasibility ofcommercial projects.

Hydropower
Hydropower Resources are very limited.
 Around 10 MW installed power.
 Red - Dead Seas Project (400-800 MW)
24Jordan

••••
•
•

JordanChallenges facing the Energy Sector in Jordan
The effects of the energy crisis in Jordan
Jordan National Energy Strategy Plan (2007-2020)
Energy Resources in Jordan
Jordan Energy Policy• Short-Term Solutions• Medium and Long Term Solutions• Primary energy mix according to the National Energy Strategy
2007-2020

25JordanJordan Energy Policy
One of the most important policies of energy sector in Jordan is toincrease the local energy resources contribution to the total energy
mixture, through improving the local sources available and searchingfor new sources in order to realize the energy supplies-related security
and bring such contribution up to 39% in 2020.

Short-Term Solutions

Medium & Long Term Solutions

 Increase the country’s strategic oil
and oil products storage capacityand development of infrastructure
projects

 Continue the implementation of thecountry’s energy strategy

 Construction of LNG Jetty atAqaba port.
26Jordan••••••Jordan
Challenges facing the Energy Sector in Jordan
The effects of the energy crisis in Jordan
Jordan National Energy Strategy Plan (2007-2020)
Energy Resources in Jordan
Jordan Energy Policy• Short-Term Solutions• Medium and Long Term Solutions• Primary energy mix according to the National
Energy Strategy 2007-2020

27JordanThe primary energy mix according to the National Energy Strategy 2007-2020
In 2013: Local Energy 3.0% & Imported Energy 97.0%

In 2016: Local Energy 9.0% & Imported Energy 91.0%

2013

In 2020: Local Energy 22.0% & Imported Energy 78.0%28Jordan

Contact

Ministry of Energy & Mineral Resources

Secretary General
P. O. Box. 140027 Amman 11814 Jordan
Tel : +962 6 5803060+962 6 5863326
Fax : +962 6 5865714
E-mail: memr@memr.gov.jo
Web site: www.memr.gov.jo‫ﺷﻛرا‬Thank you
ありがとう

ジュリア
Contact : report@tky.ieej.or.jp