Session 2 Dr Ziad Jibril Sabra, Jordan

Renewable Energy in Jordan

Ziad Jebril Sabra

Director of Renewable Energy Department

Ministry of Energy and Mineral Resources ___________________________

OECD ISMED Annual Conference, Paris- December 4th 2014

• High solar radiation figures of 5 – 7 kWh/m2 per day with about 300 sunny days per year.

• Jordan future Renewable Energy source is Solar Energy.

•

Jordan enjoys world class quality Solar and Wind Energy

Ma’an &

Quweira

• 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

Ministry of Energy and Mineral Resources

The Energy Mix in Jordan (2010 – 2020)

2010

2020

Domestic Resources 39%, Imported 61%



Oil Products 61%

Renewable 2% Imported

Electricity 1%

N. Gas 36%

Imported

Electricity 2% Imported

Electricity 1% Renewable 10%

Renewable7%

Oil Products 40%

Oil Products 51% N. Gas 29% N. Gas 29% Nuclear 6%

Oil

Shale

11%

Oil

Shale

14%

2015

Jordan Energy Strategy


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.)


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.


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.


o A well-founded reference price list (ceiling prices)

for different Renewable technologies was set by the

ERC .

o Net- Metering for small RE Systems (Roof Tops)

with Fixed Purchase Prices for Excess Power,

o Tax Incentive regime , a By-Law was issued on Tax

exemptions for RE and EE systems and Equipment.

o Grid Expansion and Reinforcement Plans are

ongoing


Reference Price List

RE source Tariff Fills/ kWh

Wind Energy 80

Solar Energy (CSP) 135

PV 100

Bio mass 90

Bio gas 60


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


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. In addition, (10) MW PV on distribution

level with IDECO to be developed by a local company

Philadilphia Solar, PPA to be singed end June, to be operational

beginning 2015.

• 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 September 2014


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 end Dec. 2014.

• About (200-250) MW is allocated for this round

Round 3: • Launched beginning February 2014. The deadline for

submission extended to 14 August 2014.(Cancelled due to

grid availability)

• About 400 MW estimated total capacity for this round (after

the Green Corridor expansion project)


Competitive Bidding Process

o The first ranked bidder for the (90) MW IPP Wind

Energy Project at Fujeij was announced, currently

under final negotiation with KEPCO.

o Several projects are under investigation by MEMR to

be tendered on public lands on due time, pending on

grid capacity availability.


EPC Turn-Key approach

o (65-75) MW Wind project at Maan, funded through a

Grant from the Kuwaiti Fund (USD 150 million).

Awarded to a Spanish contractor Elecnor, 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). currently under Prequalification and to be

operational end 2015.



Notes on OECD Report on Jordan

During Round 1 of the Direct Proposals Scheme both

developers and the government have learnt how to

implement the procurement process for the first time; this

led to some delays in the procurement process. However,

both parties will benefit from the experience gained during

the first round to avoid such delays in the next rounds.

For example, several template documents like PPAs, IRPPs

are now available and this will definitely shorten the time

consumed for the related activities in the next rounds.


Notes:

Round 3 of the direct proposals submission was cancelled

due to the grid availability (As the Green Corridor will not

be ready until 2017 (according to NEPCO)).

In Round 1, there were discussions to align tariffs across

alternative proposals submitted by developers; however, this

was a special case and will not occur again.


Notes:

The Reference Pricelist that defines the maximum tariff values

is defined by EMRC based on a well-defined study done by an

international consultant through the world bank.

There was some confusion regarding the implementation of the

Tax Exemption Bylaw after the issuance of the bylaw

instructions; however, any issue that might raise during the

implementing is raised to a special committee in MEMR to

decide about it. Some implementation issues are already

identified and they will be considered when changing the

bylaw.


Notes:

JREEEF is already operational by law, and it’s partially

operational as a department under MEMR. JREEEF director

has been appointed, and hopefully it will be fully operational

beginning 2015.

The government is committed to developing all local energy

resources like oil shale, RE, natural gas…etc.


Conclusion

• Jordan has laid down the necessary Policy and

Regulatory frameworks for Renewable Energy, and

is ready now to attract and receive commercial

investments,

• Template contractual documents (mainly PPAs) and

Instructions for developing RE projects do exist.


Government & Nonprofit

Session 2 Dr Ziad Jibril Sabra, Jordan